14th Apr 2025 12:51
(Alliance News) - Caledonia Mining Corp PLC on Monday said it has completed the sale of its Zimbabwean subsidiary, Caledonia Mining Services (Private) Ltd.
The Zimbabwe-focused exploration, development and mining firm said the disposal to CrossBoundary Energy Holdings was made for a total pretax price tag of USD22.4 million.
CMS owns and operates the 12.2 megawatt alternating current solar plant that supplies power to the Blanket mine, in which Caledonia holds a 64% stake.
Under the terms of the deal, the plant will continue to provide the mine power under an exclusive power purchase agreement.
"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," said Chief Executive Officer Mark Learmonth.
"By selling the plant for USD22.4 million, Caledonia realises a profit on the USD14.3 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's net debt as of Wednesday last week, before the transfer of proceeds from the sale, was USD3.8 million. This compared to USD8.7 million in net debt back on December 31.
Shares in Caledonia Mining were down 1.0% at 980.00 pence each in London on Monday afternoon.
By Emily Parsons, Alliance News reporter
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