Andrew
Online Reporter
Gold producer Caledonia Mining Corporation has signed an agreement to purchase Bilboes Gold Limited, which has an impressive portfolio that is likely to increase production by four times the current output.
Bilboes Gold Limited owns a gold project approximately 75km north of Bulawayo that has mining claims covering 6 870 hectares and exclusive prospecting orders covering 92 000 hectares.
Caledonia CEO Mr Mark Learmonth said in a statement on Thursday: “We are delighted to have signed an agreement for the purchase of Bilboes, the premier gold development project in Zimbabwe, and indeed one of the best gold development projects in Africa.
“This is a transformational asset for Caledonia, as we embark on the next step in our journey to become a multi-asset, mid-tier gold producer.
“Once in full production (which will be subject to financing of the capex) Caledonia’s management believes that Bilboes could produce three times our current 64 percent attributable share of gold production from Blanket, resulting in production from the enlarged Caledonia group being potentially four times its current size.”
Mr Learmonth said the acquisition of Bilboes will build on the recent acquisition of the Maligreen claims, also in Zimbabwe.
Bilboes was formerly owned and explored by Anglo American Corporation Zimbabwe Limited prior to its exit from the local gold sector in 2003.
Online Reporter