Online Reporter
Sikhulekelani Moyo, Zimpapers Business Hub
CALEDONIA Mining Corporation Plc has announced the pricing of US$125 million aggregate principal amount of 5.875 percent Convertible Senior Notes due 2033, issued through a private placement to persons reasonably believed to be qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended.
In a statement, Caledonia said the size of the Convertible Notes Offering was increased from the initially announced US$100 million, reflecting strong investor demand.
The company has also granted the initial purchasers an option to buy up to an additional US$25 million aggregate principal amount of Notes. The option is exercisable during a 13-day period beginning on, and including, the date the Notes are first issued.
“The Convertible Notes Offering is expected to close on January 20, 2026, subject to the satisfaction of customary closing conditions,” said Caledonia.
The Notes will be general senior unsecured obligations of the company and will accrue interest at a rate of 5.875 percent per year, payable semi-annually in arrears on January 15 and July 15 of each year, beginning July 15, 2026.
The Notes will mature on January 15, 2033, unless earlier converted, redeemed or repurchased.
Caledonia estimates that net proceeds from the offering will be approximately US$120.2 million, or about US$144.4 million if the initial purchasers fully exercise their option to buy additional Notes. This is after deducting purchasers’ discounts, commissions and estimated offering expenses payable by the company.
The gold producer said it expects to use the net proceeds to pay approximately US$12 million related to capped call transactions and to strengthen its financial flexibility. The funds will also support a range of strategic priorities, including development of the Bilboes gold project in Zimbabwe, general corporate purposes, ongoing operational needs and working capital requirements.
Should the option for additional Notes be exercised, Caledonia said part of the proceeds would be used to enter into additional capped call transactions, with the balance applied to the same corporate and project development objectives.
