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In a statement, Caledonia said regulatory approval to implement its indigenisation plan had been granted.
In February, the company signed a Memorandum of Understanding with the Ministry of Youth Development, Indigenisation and Empowerment in February to sell 51 percent of its shares with a transactional value of $30,09 million to locals.
Under the MoU, 10 percent of the shares would be donated to the Gwanda Community Share Trust, another 10 percent would be sold to the Blanket Mine Employee Trust, 15 percent were to be acquired by a consortium of Indigenous Zimbabweans while the National Indigenisation and Economic Empowerment Fund would buy 16 percent.
Caledonia undertook to source funding to buy the shares which would be repaid from future dividends.
The agreement was subject to regulatory approval from the Reserve Bank of Zimbabwe and Caledonia receiving confirmation from the Government that full implementation of the terms of the MoU constituted compliance by Blanket and Caledonia with the requirements of the Indigenisation Act.
Caledonia said the requisite approvals, including repatriation of funds and interest to Caledonia, had been received.
“Caledonia is pleased to announce that RBZ approval has been received and accordingly, the various agreements and related transactions have now been implemented.”
The company’s chief executive Mr Stefan Hayden said they looked forward to working with the new indigenous partners.
“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 among 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.”
Caledonia this week announced that gold production in the last quarter was the highest since the establishment of the mine in 1906 with 12 919 ounces produced.
The Government has embarked on a programme to give majority ownership in foreign-owned companies to locals. The process started in the mining sector where major mining houses gave 10 percent shareholding to Community Share Trusts.
Online Reporter