Caledonia Mining Corporation Plc (LON:CMCL) has increased its ownership in the Blanket gold mine in Zimbabwe to 64% through the acquisition of an additional 15% stake from Fremiro Investments.
The original MOU was signed in November 2018, but it has taken until now for regulatory approvals to come through.
The US$16.7mln consideration will be met by the cancellation of a US$11.5mln loan between the companies and the issue of shares equal to a 6.3% stake in Caledonia at the price at the time of US$7.15.
Steve Curtis, Caledonia’s chief executive, said: “I would like to thank Fremiro for its support as a shareholder in Blanket during the last seven years and am confident that Fremiro, now as a significant shareholder in the Company, will continue to be supportive of Caledonia's business going forward."
