Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) has decided to raise more funds than originally anticipated in respect of its Victoria Falls Stock Exchange (VFEX) listing, due to extremely positive investor response inside Zimbabwe.
At the offer price of US$12.64 per depositary receipt, Caledonia expects to issue up to approximately 630,000 new shares, raising approximately US$7.96mln.
The proceeds of the offer will be used for general corporate purposes in Zimbabwe.
One of the benefits of a listing of depositary receipts representing shares on the Victoria Falls Stock Exchange in Zimbabwe is an improvement in the proportion of the revenues received in US dollars for gold produced in country, at the company's majority owned Blanket Mine.
"The support from Zimbabwe investors has been extremely encouraging and reinforces our belief that this listing is an important milestone, welcoming new shareholders, with a mutual desire for investment in Zimbabwe and who have not, until now, been able to participate in Caledonia's growth journey,” said Caledonia’s chief executive Steve Curtis.
"The VFEX listing will also enable Caledonia to progress with its next phase of development. The access to 100 per cent USD revenue for incremental gold sales will assist Blanket, and any other new mine Caledonia develops, and will attract investors who are confident that Zimbabwe is a competitive investment environment capable of delivering attractive returns.