TIDMCMCL
RNS Number : 2929B
Caledonia Mining Corporation PLC
07 October 2020
Caledonia Mining Corporation Plc
(NYSE American: CMCL; AIM: CMCL)
Solar power project update
St Helier, October 7, 2020: Further to the announcement on
September 4, 2020 regarding Caledonia Mining Corporation Plc (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 Plc
Mark Learmonth Tel: +44 1534 679 802
Camilla Horsfall 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 Tel: +1 917 991 7701
Paul Durham 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" 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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END
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