Caledonia Mining Corporation Plc: Block Listing Application and "At The Market" Sales Agreement
July 24 2020 - 2:00AM
Caledonia Mining Corporation Plc (“Caledonia” or the “Company”)
(NYSE AMERICAN: CMCL; AIM: CMCL) today announces that it has
entered into an "At the Market" or "ATM" sales agreement with
Cantor Fitzgerald & Co (“Cantor”) (the “ATM Sales Agreement”),
pursuant to which the Company may, at its discretion from time to
time, sell up to US$13m worth of shares. Any sales of shares would
occur by means of ordinary brokers’ transactions or block trades,
with sales only being made on the NYSE American at market prices.
Caledonia expects to use the amount of any net proceeds from the
sales for investment in the construction of a solar power plant to
supply electricity to Blanket Mine in Zimbabwe.
Cantor, acting as sales agent, may conduct sales
for the benefit of the Company should the Company elect to initiate
a transaction or transactions, dependent on market conditions and
such other terms as the Company may specify. It is possible, and
indeed likely, that multiple transactions could be effected under
the ATM Sales Agreement over time. The ATM Sales Agreement is not a
formal placing and any potential sales of new shares are not
underwritten by the sales agent.
Accordingly an application has been made to AIM
for a block admission in respect of up to 800,000 new depositary
interests representing the same number of shares in the share
capital of the Company which will rank pari passu with the existing
shares in issue. It is expected that the block admission will
become effective on 27 July 2020. These new shares will be issued
and allotted from time to time to settle any sales conducted under
the ATM Sales Agreement.
Following admission, the Company's issued share
capital remains unchanged at 11,520,860. The Company will make
six-monthly announcements of the utilisation of the block
admission, in line with its obligations under AIM Rule 29.
Caledonia Mining Corporation PlcMark
LearmonthMaurice Mason |
Tel: +44 1534 679 802Tel: +44 759 078 1139 |
|
|
WH IrelandAdrian
Hadden/James Sinclair-Ford |
Tel: +44 20 7220 1751 |
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|
BlytheweighTim
Blythe/Camilla Horsfall/Megan Ray |
Tel: +44 207 138 3204 |
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3PPBPatrick
ChidleyPaul Durham |
Tel: +1 917 991 7701Tel: +1 203
940 2538 |
Note: This announcement contains inside
information which is disclosed in accordance with the Market Abuse
Regulation (EU) No.
596/2014.
Cautionary Note Concerning
Forward-Looking Information
Information and statements contained in this
news release that are not historical facts are “forward-looking
information” within the meaning of applicable securities
legislation that involve risks and uncertainties relating, but not
limited to Caledonia’s current expectations, intentions, plans, and
beliefs. Forward-looking information can often be identified
by forward-looking words such as “anticipate”, “believe”, “expect”,
“goal”, “plan”, “target”, “intend”, “estimate”, “could”, “should”,
“may” and “will” or the negative of these terms or similar words
suggesting future outcomes, or other expectations, beliefs, plans,
objectives, assumptions, intentions or statements about future
events or performance. Examples of forward-looking information in
this news release include: production guidance, estimates of
future/targeted production rates, and our plans and timing
regarding further exploration and drilling and development. This
forward-looking information is based, in part, on assumptions and
factors that may change or prove to be incorrect, thus causing
actual results, performance or achievements to be materially
different from those expressed or implied by forward-looking
information. Such factors and assumptions include, but are not
limited to: failure to establish estimated resources and reserves,
the grade and recovery of ore which is mined varying from
estimates, success of future exploration and drilling programs,
reliability of drilling, sampling and assay data, assumptions
regarding the representativeness of mineralization being
inaccurate, success of planned metallurgical test-work, capital and
operating costs varying significantly from estimates, delays in
obtaining or failures to obtain required governmental,
environmental or other project approvals, inflation, changes in
exchange rates, fluctuations in commodity prices, delays in the
development of projects and other factors.
Security holders, potential security holders and
other prospective investors should be aware that these statements
are subject to known and unknown risks, uncertainties and other
factors that could cause actual results to differ materially from
those suggested by the forward-looking statements. Such factors
include, but are not limited to: risks relating to estimates of
mineral reserves and mineral resources proving to be inaccurate,
fluctuations in gold price, risks and hazards associated with the
business of mineral exploration, development and mining, risks
relating to the credit worthiness or financial condition of
suppliers, refiners and other parties with whom the Company does
business; inadequate insurance, or inability to obtain insurance,
to cover these risks and hazards, employee relations; relationships
with and claims by local communities and indigenous populations;
political risk; availability and increasing costs associated with
mining inputs and labour; the speculative nature of mineral
exploration and development, including the risks of obtaining or
maintaining necessary licenses and permits, diminishing quantities
or grades of mineral reserves as mining occurs; global financial
condition, the actual results of current exploration activities,
changes to conclusions of economic evaluations, and changes in
project parameters to deal with unanticipated economic or other
factors, risks of increased capital and operating costs,
environmental, safety or regulatory risks, expropriation, the
Company’s title to properties including ownership thereof,
increased competition in the mining industry for properties,
equipment, qualified personnel and their costs, risks relating to
the uncertainty of timing of events including targeted production
rate increase and currency fluctuations. Security holders,
potential security holders and other prospective investors are
cautioned not to place undue reliance on forward-looking
information. By its nature, forward-looking information involves
numerous assumptions, inherent risks and uncertainties, both
general and specific, that contribute to the possibility that the
predictions, forecasts, projections and various future events will
not occur. Caledonia undertakes no obligation to update publicly or
otherwise revise any forward-looking information whether as a
result of new information, future events or other such factors
which affect this information, except as required by law.
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