CALEDONIA Mining Corporation will increase a planned capital raising as a result of listing on Zimbabwe’s newly created Victoria Falls Stock Exchange (VFEX).
It will now raise $7.96m from the issue of approximately 630,000 new shares at an offer price of $12.64 per depositary receipt. The proceeds of the offer would be used for general corporate purposes in Zimbabwe, the company said.
This followed an “extremely positive Zimbabwe investor response” to its plan to list depositary receipts on the Victoria Falls Stock Exchange, scheduled for December 2. One of the benefits of the listing is the improvement in the proportion of revenues received in US dollars for gold produced at the firm’s Blanket mine in Zimbabwe.
“The access to 100% US dollar revenue for incremental gold sales will assist Blanket, and any other new mine Caledonia develops, and will attract investors who are confident that Zimbabwe is a competitive investment environment capable of delivering attractive returns,” said Steve Curtis CEO of Caledonia Mining.
Caledonia said it will announce the exact number of new shares, and depositary receipts, to be issued once subscription monies have been deposited and formalities have been completed “in the next few days”.
Once the securities are issued, the company’s depositary in Zimbabwe will liaise with the VFEX to have the depositary receipts admitted to electronic trading in Zimbabwe and dealings will commence.