Further to the announcement on September 4, 2020 regarding
Caledonia Mining Corporation Plc (NYSE American: CMCL; AIM:
CMCL)
(the “Company” or “Caledonia”) raising
the required funds to invest in the construction of a solar power
plant to supply electricity to the Blanket Mine in Zimbabwe,
Caledonia is pleased to now announce that it has appointed Voltalia
as the contractor for the project.
Voltalia is an
international renewable energy provider and is listed on the
regulated market of Euronext Paris. It has considerable experience
in the delivery of renewable energy projects including the
development, construction, operation and maintenance of solar power
plants. Voltalia is already active notably in Burundi, Malawi and
South Africa. Caledonia looks forward to working closely with
Voltalia to deliver a successful project at the Blanket Mine which,
on completion, is expected to provide approximately 27% of the
mine’s total electricity demand. This will significantly reduce the
risk to the mine of any further deterioration in the quality of
grid power which would necessitate increased use of diesel
generators (which are substantially more expensive than grid
power). The plant will also reduce Blanket Mine’s environmental
footprint.
Caledonia and Voltalia
have agreed an initial design phase for the project after which,
subject to the conclusion of an Engineering, Procurement and
Construction (EPC) contract, procurement and construction are
expected to begin with current indicated commissioning for the 12MW
solar plant in the last quarter of 2021.
As previously
announced, Caledonia raised the funds required to construct the
plant by way of an at the market sales process on NYSE American
conducted by Cantor Fitzgerald & Co on its behalf. Pursuant to
the process, the Company issued 597,963 shares, representing
considerably fewer issued shares than the expected 800,000 that it
had initially applied to list.
The project is
primarily intended to protect the Blanket Mine from any further
deterioration in the electricity supply situation. Whilst the
project is therefore being done for largely defensive reasons, it
is expected to yield a modest return to shareholders after taking
account of the dilutive effect of the equity issued to fund it.
For further information please contact:
Caledonia Mining Corporation PlcMark
LearmonthCamilla Horsfall |
Tel: +44 1534 679 802 Tel: +44 7817 841793 |
WH IrelandAdrian
Hadden/James Sinclair-Ford |
Tel: +44 20 7220 1751 |
BlytheweighTim
Blythe/Megan Ray 3PPBPatrick
ChidleyPaul Durham |
Tel: +44 207 138 3204Tel: +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”, “financial outlooks” or “future oriented
financial information” (collectively, “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,
construction plans, financial and shareholders returns on
investment in construction projects and electricity
production/supply to the mine. 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, the completion of construction projects, the proposed
benefits from construction projects and other factors.
To the extent any forward-looking information
herein constitutes a financial outlook or future oriented financial
information, any such statement is made as of the date hereof
and included herein to provide prospective investors with an
understanding of the Company’s construction plans and assumptions.
Security holders, potential security holders and other prospective
investors are cautioned that such information may not be
appropriate for other purposes and 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, contractors 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; risks
related to natural disasters, terrorism, civil unrest, public
health concerns (including health epidemics or outbreaks of
communicable diseases such as the coronavirus (COVID-19));
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, construction
activity and currency fluctuations. Security holders, potential
security holders and other prospective investors are cautioned that
the assumptions used in the preparation of such forward-looking
information, although considered reasonable at the time of
preparation, may prove to be imprecise and, accordingly, they
should not to place undue reliance on such 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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