Caledonia Mining Corporation Plc (“Caledonia” or the “Company”)
(NYSE AMERICAN: CMCL; AIM: CMCL) is pleased to announce that
further to its announcement on December 10, 2020, that it had
entered into an option agreement over Glen Hume, it has now entered
into a further option agreement in respect of another area in
Zimbabwe. This option agreement gives the Company the exclusive
right to explore and subsequently, if exploration is successful and
at its sole discretion, acquire the mining claims over an area
known as Connemara North, a property which, like Glen Hume, is
situated in the Gweru mining district in the Zimbabwe Midlands that
has historically produced significant quantities of gold.
Connemara North is the
northern section of the currently closed Connemara mine which was
previously owned by First Quantum Minerals (“First Quantum”); it
was placed on care and maintenance in 2001 and subsequently
disposed of in 2003. It has not been commercially mined since this
time but before being placed on care and maintenance the Connemara
mine produced approximately 20,000 ounces of gold per annum from an
open pit heap leach operation. Previous public disclosures made by
First Quantum in 2001 indicated that they had plans to expand the
existing open pit operations at Connemara mine, when gold prices
were approximately $300/oz. At this stage it is not possible for
Caledonia to verify any of the work performed by previous owners or
to ascertain what proportion of any purported resource lay within
the boundaries of the Connemara North property over which Caledonia
has secured the option. The property is approximately 30km from
Glen Hume with good road access between them offering the potential
of operating synergies should Caledonia decide to develop both
areas.
The option gives Caledonia the right to explore
the area for a period of up to 18 months and subsequently, if
exploration is successful and at its sole discretion, to acquire
the mining claims over the area. The total consideration is an
initial payment of $300,000, followed by a further payment of $5
million (payable in cash or shares at the discretion of the vendor)
which would be payable should Caledonia decide to exercise its
right to acquire the mining claims. Caledonia has also agreed to
the payment of a one per cent net smelter royalty to the vendor on
gold it produces from Connemara North.
Commenting on the announcement, Steve
Curtis, Chief Executive Officer, said:
“We are pleased to
enter into this option agreement which gives us the right to
explore and subsequently to acquire mining claims over the
Connemara North property, part of a wider area that contained a
previously operational mine which shows great potential and has
been lying untapped for 20 years.
“Connemara North is
also in close proximity to the Glen Hume property over which we
have already acquired an option. We are excited at the
prospectivity of these two properties and if evaluation work proves
successful and our exploration programs deliver favorable results,
Caledonia will have a great opportunity to establish a footprint in
the highly prospective Zimbabwe Midlands which could deliver
operating synergies between the two sites.
“This has been a busy
year for Caledonia and with the completion of Central Shaft in
sight I am pleased that we are now able to start delivering on the
other components of our corporate strategy.”
For further
information please contact:
Caledonia Mining Corporation Plc Mark Learmonth
Camilla Horsfall |
Tel: +44 1534 679 802 Tel: +44 7817 841793 |
WH Ireland
Adrian Hadden/James Sinclair-Ford |
Tel: +44 20 7220 1751 |
Blytheweigh Tim
Blythe/Megan Ray |
Tel: +44 207 138 3204 |
3PPB Patrick
Chidley Paul Durham |
Tel: +1 917 991 7701 Tel: +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 projects. 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 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 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.
Caledonia Mining (AMEX:CMCL)
Historical Stock Chart
From Feb 2024 to Mar 2024
Caledonia Mining (AMEX:CMCL)
Historical Stock Chart
From Mar 2023 to Mar 2024