Blanket Mine now fully indigenised

wholly owned Blanket Mine.
Caledonia yesterday said RBZ approval has been received and accordingly, the various agreements and related transactions have now been implemented.
The gold producer received its certificate of compliance from the Government in June this year, after it signed a conditional agreement to sell a 16 percent stake in Blanket Gold Mine to the National Indigenisation and Economic Empowerment Fund for US$11,74 million.
This agreement was in addition to the conditional agreements that have already been signed in accordance with the terms of the February 2012 MoU with the Minister of Youth Development, Indigenisation and Empowerment Saviour Kasukuwere.
These included an agreement signed in May for the sale of 10 percent of Blanket for a consideration of US$7,34 million to the Blanket Mine Employee Trust that was established for the benefit of the present and future managers and employees of the mine.
A second agreement has been signed for the donation of 10 percent of Blanket to the Gwanda Community Share Ownership Trust, which would benefit the local community. Under the terms of the MoU, Blanket would make a non-refundable donation of US$1 million to the trust. The agreements were in addition to the agreement for the sale of 15 percent ownership of Blanket to a consortium of indigenous Zimbabweans for a consideration of US$11 million
Completion of these various indigenisation agreements was, however, subject to the approval by the RBZ.
Caledonia chief executive officer Mr Stefan Hayden said the cash generated from the indigenisation transactions would go towards expanding operations.
“I am very pleased that the implementation of indigenisation at Blanket has now been completed. We welcome our new indigenous Zimbabwean partners, with whom we look forward to developing a mutually beneficial relationship.
“The newly indigenised Blanket is in a unique position amongst Zimbabwean gold miners as Blanket has significant growth potential which can be funded from internal cash flows.
“Blanket can now finalise and implement its growth and development strategy to grow its operations for the benefit of all stakeholders,” he said.
All mining companies including Zimbabwe Platinum Holdings and Mimosa Mining Company have since had their indigenisation compliance plans approved and what is left is implementation of these proposed plans.