Proceeds of the share sale are earmarked for investment in the construction of a solar power plant to supply electricity to the Blanket gold mine in Zimbabwe. The company said it had raised the funds via its “at the market” (ATM) equity sale agreement, issuing some 597.9mln shares.
Caledonia plans to construct a solar plant to handle all of the Blanket mine’s baseload electricity demand during daylight hours and about 27% of Blanket’s total daily electricity demand.
Last month, Caledonia confirmed a strong financial and operating performance in the second quarter of 2020.
The company, at that time, told investors that the coronavirus (COVID-19) pandemic had very little effect during the period with production continuing at around 93% of the targeted level during a three-week lockdown period that started in Zimbabwe on March 30, 2020.
It said that the operating environment in Zimbabwe had continued to improve and although there had been interruptions to the electricity supply from the grid, these had been circumvented by Caledonia’s use of diesel generators.