Caledonia Mining Corporation has secured US$13 million for the construction of a solar power plant to supply electricity to its Blanket gold mine in Zimbabwe.
Caledonia Mining raised the proceeds via the sale and issue of 597 963 shares in the company on the New York Stock Exchange.
Pursuant to the at the market sales agreement with Cantor Fitzgerald & Co announced in July 2020, the company applied to the AIM for a block admission of up to 800 000 new depositary interests, representing the same number of shares in the company, to raise the $13 million.
Given that Caledonia Mining has now raised the maximum amount of funds sought under at the sales, agreement, it has cancelled the remaining portion of the block admission (namely 202 037 depositary interests.
The solar power plant will create a more stable and reliable power source for operations, which is an important step towards preventing the loss of downtime and further de-risking the project.
The proposed solar project will supply approximately 30% of the Blanket mine’s total electricity requirements across a 24 hour period, including the evenings. The company has received a generating licence and the necessary approvals from the Zimbabwe Investment Authority and has shortlisted contractors for the solar project.