Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) confirmed it has now completed the sale of its solar plant for $22.35 million.
It sold the subsidiary that owns and operates a 12.2MWac solar plant that continues to supply power to the Blanket Mine under an exclusive power purchase agreement.
Proceeds will be used to fund growth and expansion projects.
"We are pleased to have completed the sale of the solar plant, strengthening our cash position and enabling us to redeploy capital towards our core gold mining and expansion operations,” chief executive Mark Learmonth said.
"By selling the plant for $22.35 million, Caledonia realises a profit on the $14.3 million construction cost.
“Importantly, we retain the exclusive energy off-take agreement, ensuring that approximately 20% of Blanket Mine's daily electricity needs continue to be met by renewable energy."
Caledonia noted that it now has a cash balance of around $18.6 million, and $3.8 million of net debt.
“The mine will continue to source clean energy from the plant, with proceeds available for the company’s growth plans,” Panmure Liberum analyst Duncan Hey said in a note.
The broker added: “All eyes are now on the forthcoming Bilboes feasibility study.”
Panmure Liberun has a ‘Buy’ rating and a 2,054p target price implying substantial upside to the current market price of around 990p.