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Nqobile Bhebhe, Senior Business Reporter
Zimbabwe’s Mining Industry Pension Fund (MIPF) made a significant subscription to Caledonia Mining Corporation Zimbabwe fundraiser that sought to raise US$10 million, a development commended by the Victoria Falls Stock Exchange-listed mining firm.
In late March, the company which is angling towards becoming a multi-asset gold producer in Zimbabwe went to the market to raise approximately £8,1 million (approximately US$10 million) (before expenses), pursuant to a placing of new common shares of no par value at a price per Placing Share of £11,15 (approximately US$13,74).
So overwhelming was the participation from existing and new local institutional shareholders that the firm had to extend the fundraiser by a week.
They raised in total approximately US$16,566 million before expenses.
The net proceeds of the fundraise, together with the company’s existing cash reserves and the future cash to be generated from its ownership of the producing and cash generative Blanket Mine and from the Bilboes oxide operation, are earmarked to strengthen its balance sheet and provide working capital flexibility to accelerate planned work at the three new gold projects it is undertaking in Zimbabwe.
In a notice on Tuesday, chief executive officer, Mr Mark Learmonth said there was encouraging strong demand from new and existing institutional investors in Zimbabwe.
He singled out Zimbabwe’s Mining Industry Pension Fund, a self-administered Defined Contribution pension fund that was set up in 1952 to provide retirement income for employees in the mining industry upon attainment of prescribed retirement ages.
“I am very pleased to see such strong demand from new and existing institutional investors in Zimbabwe such as Zimbabwe’s Mining Industry Pension Fund who subscribed for a significant amount of the Zimbabwe Placing. Their support will help us accelerate our growth plans in Zimbabwe,” he noted.
However, the amount of investment made was not indicated.
Giving an update on the Zimbabwe Placing, Caledonia said it raised approximately US$5,825 million before expenses.
“The Zimbabwe Placing received strong support from new and existing institutional investors. A total of 423,951 Zimbabwean Depository Receipts (ZDRs) have been placed at the Placing Price of $13.74 each. IH Securities (Private) Limited acted as broker in relation to the Zimbabwe Placing.
“As a reminder, a total of 781,749 Placing Shares were admitted to trading on AIM on March 30, 2023 following a placing with domestic and international institutional and sophisticated investors at the Placing Price by Cenkos, Liberum, and Standard Bank acting as joint book runners in relation to the Placing.”
In total including the ZDRs, 1,205,700 common shares have been placed in the form of depositary interests and ZDRs and the Fundraise has raised in total approximately US$16,566 million before expenses.
“The net proceeds of the Fundraise, together with the Company’s existing cash reserves and the future cash to be generated from its ownership of the producing and cash generative Blanket Mine and from the Bilboes oxide operation, will strengthen the Company’s balance sheet and provide the Company with working capital flexibility to accelerate planned work at the three new gold projects it is undertaking in Zimbabwe,” said the mining entity.
Online Reporter