Caledonia Mining Corporation Plc completed the acquisition of Bilboes gold project in Zimbabwe from Baker Steel Resources Trust Ltd. a fund managed by Baker Steel Capital Managers LLP, Toziyana Resources Limited and Infinite Treasure Limited.
The Transaction is subject to several conditions including, that Bilboes Holdings receives confirmation from the Zimbabwe authorities, be able to export gold directly and to retain 100 per cent of the sale proceeds in US dollars with no requirement to convert US dollar gold revenues into domestic currency, and Caledonia will, subject to satisfaction of conditions and any customary adjustments to the purchase price to account for any extraordinary liabilities incurred before completion. The transaction is also subject to Zimbabwean regulatory approvals from the Zimbabwe Competition and Tariff Commission, the Zimbabwe Revenue Authority and the Reserve Bank of Zimbabwe, and approvals for the listing of the Consideration shares from applicable securities exchanges. The use the proceeds will be contributing towards funding the capital cost of the larger scale sulphide project.
Giles Douglas and Muhammad Jaffer of Rothschild & Co and Cenkos Securities plc (AIM:CNKS) acted as financial advisor to Caledonia. Hannam & Partners acted as financial advisor to Bilboes. Adrian Hadden, Neil McDonald and Pearl Kellie of Cenkos Securities plc acted as Nomad and Joint Broker and Scott Mathieson/Kane Collings of Liberum Capital Limited acted as Joint Broker in the transaction. Lesley Gregory of Memery Crystal Limited acted as legal advisor to Caledonia Mining.
Caledonia Mining Corporation Plc (NYSEAM:CMCL) completed the acquisition of Bilboes gold project in Zimbabwe from Baker Steel Resources Trust Ltd. (LSE:BSRT) a fund managed by Baker Steel Capital Managers LLP, Toziyana Resources Limited and Infinite Treasure Limited on January 6, 2023. Al Gourley and Jodi Katz of Fasken Martineau DuMoulin LLP acted as legal advisor to Baker Steel Resources Trust Ltd. (LSE:BSRT). As on March 30 2023, as a reminder, 441,095 of the consideration shares under the Transaction that would have been issued to Toziyana Resource (the âEscrow Sharesâ) were withheld by Caledonia to be issued to Shining Capital Holdings instead in settlement of a separate commercial arrangement between Toziyana's holding company and Shining Capitalâs subsidiary, Infinite Treasure Limited. The issue of the Escrow Shares to Shining Capital was subject to approval by The Reserve Bank of Zimbabwe of the commercial arrangement between Toziyana's holding company and Infinite Treasure Limited. Following the receipt of the aforementioned approval, Toziyana and Shining Capital have now instructed the Company to issue the Escrow Shares. After issue of the Escrow Shares, which is expected to occur on April 4, 2023, Caledonia will have a total of 18,506,156 common shares of no par value each, all of which have voting rights. As of April 12, 2023. he Company announces that it has instructed the issue of a further 256,152 shares (the 'Deferred Shares'). As a reminder, under the Transaction, 5% of the total consideration shares, being the Deferred Shares, were retained by Caledonia in order that adjustments to the purchase price could be calculated after completion to account for any extraordinary liabilities incurred.