Caledonia Mining Corporation Plc (the “Company” or “Caledonia”)
(NYSE American: CMCL; AIM: CMCL) is pleased to announce that
it has signed an agreement (the “agreement”) with the Government of
the Republic of Zimbabwe (the “Government”) under which Caledonia
will evaluate mining rights, properties and/or projects in the gold
sector that are controlled by the Government with a view to
assessing the potential to advance development on these properties
or projects.
Caledonia believes
Zimbabwe is a highly prospective region for gold discoveries.
Caledonia has assessed and continues to assess investment
opportunities in the Zimbabwe gold sector that are privately owned.
However, the Government of Zimbabwe has a considerable portfolio of
assets in the gold sector that are potentially very attractive and
Caledonia and the Government have therefore entered into an
agreement whereby Caledonia is provided an opportunity to review
this portfolio to determine whether they may be commercially
developed for mutual benefit.
Commenting on this agreement, Steve Curtis,
Chief Executive Officer said:
“I am delighted we have reached this agreement
which will give Caledonia access to a new and much increased number
of potential investment opportunities in the Zimbabwe gold sector.
Over the years of operating in Zimbabwe we have established a
professional relationship with the appropriate bodies and have a
strong performance, social and ethical record. We look forward to
applying the same approach to any future opportunities in the
country, developing the assets in the same responsible way we have
done at Blanket, with any new developments including a local
ownership structure and community engagement.”
“The signing of this agreement is very timely:
Blanket Mine, Caledonia’s current investment in Zimbabwe, is
approaching the end of a multi-year, +$60 million investment in a
new shaft. When this project is completed later this year,
Blanket’s annual gold production is expected to increase from
approximately 55,000 ounces to approximately 80,000 ounces per
annum from 2022 onwards. The increased level of production, in
conjunction with the higher gold price, means that we should have
the financial capacity to consider further meaningful investments
in the Zimbabwe gold sector.”
The Hon. Winston Chitando, Minister for Mines
and Mine Development, said:
“Since Caledonia purchased Blanket Mine in 2006,
it has increased production at Blanket from less than 20,000 ounces
of gold per annum and is now poised to increase production to
80,000 ounces per annum. Blanket Mine has more than doubled its
employment from less than 800 in 2006 to a current level of
approximately 1,650; Blanket is also a major tax-payer in Zimbabwe
and we expect this to increase substantially in the next few years.
Caledonia is also an outstanding corporate citizen in Zimbabwe,
having facilitated local ownership partnerships of Blanket Mine
since 2012.
“I am therefore pleased that Caledonia will
apply its experience, technical expertise and its financial
capacity to evaluate the portfolio of gold assets that are held by
the Government. I am confident that Caledonia will make an even
larger contribution to the economy of Zimbabwe as a result of
further investments in our gold industry.”
___________Mr Dana Roets (B Eng (Min.), MBA,
Pr.Eng., FSAIMM, AMMSA), Chief Operating Officer, is the Company’s
qualified person as defined by Canada’s National Instrument 43-101
and has approved any scientific or technical information contained
in this news release.
For further information please contact:
Caledonia Mining Corporation PlcMark
LearmonthCamilla Horsfall |
Tel: +44 1534 679 802 Tel: +44
7817 841 793 |
WH IrelandAdrian
Hadden/James Sinclair-Ford |
Tel: +44 20 7220 1751 |
BlytheweighTim
Blythe/Megan Ray |
Tel: +44 207 138 3204 |
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 InformationInformation 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; 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 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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