Caledonia Mining buys Bilboes gold project in Zimbabwe
Caledonia is offering 5,123,044 shares representing about 28.5% of Caledonia's fully-diluted equity, and a 1% net smelter royalty. Total deal is valued at about $53.3 million.
"We are delighted to have signed an agreement for the purchase of Bilboes, the premier gold development project in Zimbabwe, and indeed one of the best gold development projects in Africa," said CEO Mark Learmonth.
"This is a transformational asset for Caledonia, as we embark on the next step in our journey to become a multi-asset, mid-tier gold producer. Once in full production (which will be subject to financing of the capex) Caledonia's management believes that Bilboes could produce three times our current 64 per cent attributable share of gold production from Blanket, resulting in production from the enlarged Caledonia group being potentially four times its current size.
"The acquisition of Bilboes will build on the recent acquisition of the Maligreen claims which host NI 43-101 compliant inferred mineral resources of 940,000 ounces of gold in 15.6 million tonnes at a grade of 1.88g/t. We continue our work at Maligreen which is focused on increasing the confidence level of the resource base."