adminMining Corporation recently commenced trading its shares on the OTCQX International, the premier tier of the United States over-the-counter market.
The anticipated new sources of funding will be over and above the US$4 million that Caledonia has set aside for exploration at Blanket this year and early 2012.
Blanket mine is owned by Caledonia, and the group is currently expanding its operations at the mine, where it is currently ramping up production to an annualised 40 000 ounces a year.
More significantly, beyond the current ramp-up, Caledonia is working towards an ambitious programme to expand production further, which is ultimately targeting a 100 000 ounce a year run-rate by 2015.
According to Caledonia,
Collins Stewart LLC – independent financial advisory group and
parent company of Collins Stewart Europe Limited – will serve as the group’s Principal American
Liaison on OTCQX, responsible
for providing guidance on OTCQX requirements and US securities
laws.
Commenting on the development Caledonia chief executive Mr Stefan Hayden said trading on the OTCQX would improve the company’s access to potential investors.
“We are very pleased to be a part of OTCQX and believe trading on the highest tier of the OTCOX will provide Caledonia with enhanced market access to a larger spread of institutional investors and with improved liquidity.
“We are confident that the move to the more transparent, premier tier OTCQX market will provide the United States investment community with improved access to Caledonia,” he said.
In terms of on-going projects, Blanket is currently sinking one new shaft and rehabilitating three others on two of its highly prospective brown-field satellite zones, which is 7km from Blanket’s metallurgical plant, and the Mascot Project Area, which is 42 km away.
Work at the mine also includes development of a 22-Level Haulage, which is essentially a horizontal tunnel 750 metres below the surface that will provide access for further exploration of the up-dip and down-dip extensions of the mine’s known main ore bodies above and below this depth.
Last year, the mine made new investments in respect of underground installations to its Number 4-shaft project, and the commissioning of stand-by generators to negate the effects of power outages.
This significantly contributed to improved production, resulting in the mine reporting a 300 percent increase in second quarter profits, supported by record world market prices.
Gold output for the second quarter topped 8 226 ounces up 12 percent on the previous quarter and some 141 percent over the comparable period last year.
Gross profits rose 300 percent reaching US$6,3 million compared to about US$1,5 over the same period in 2010.
Investor-focused companies typically use the quality-controlled OTCQX platform to offer investors transparent trading, superior information, and easy access through their regulated US broker-dealers.
The innovative OTCQX platform offers companies and their shareholders a level of marketplace services formerly available only on a US exchange.
Meanwhile, gold remains a haven for investors as the United States dollar and other major currencies in the European Union have largely remained weak during the course of the year.
Online Reporter
Sidumisile Mabena