Gold producer Caledonia Mining, the 49%-owner of the Blanket gold mine in Zimbabwe, has entered into a sales agreement which will allow the company to raise proceeds to fund the construction of a solar power plant to supply electricity to the mine.
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.
Under the sales agreement with Cantor Fitzgerald & Co, Caledonia Mining may sell up to US$13 million worth of shares.
Any sales of shares would occur by means of ordinary brokers’ transactions or block trades, with sales only being made on the NYSE American at market prices.
Cantor, acting as sales agent, may conduct sales for the benefit of Caledonia Mining should the company elect to initiate a transaction or transactions, dependent on market conditions and such other terms as the company may specify.
It is possible, and indeed likely, that multiple transactions could be effected under the at-the-market sales agreement over time.