REG - Caledonia Mining Crp - Completion of Solar Plant sale

Caledonia MiningAnnouncement

14/04/2025 07:00

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RNS Number : 8602E  Caledonia Mining Corporation PLC  14 April 2025

Caledonia Mining Corporation Plc

 

Caledonia completes sale of Solar Plant

 

(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)

 

Caledonia completes $22.35m sale of 12.2MWac solar plant, unlocking

capital for growth strategy

 

 

St Helier, April 14, 2025 - Caledonia Mining Corporation Plc ("Caledonia" or
"the Company") is pleased to announce the successful completion of the sale,
on April 11, 2025, of its Zimbabwean subsidiary, Caledonia Mining Services
(Private) Limited ("CMS"), to CrossBoundary Energy Holdings ("CBE") for a
pre-tax consideration of $22.35 million payable in cash. CMS owns and operates
the 12.2MWac solar plant that supplies power to Blanket Mine. Under the terms
of the sale, the solar plant will continue to provide Blanket Mine with power
under an exclusive power purchase agreement, ensuring a reliable renewable
energy source for the mine.

 

In September 2024, following a robust bidding process managed by Caledonia's
Zimbabwe financial advisors IH Advisory, Caledonia signed a conditional sale
agreement with CBE to sell the solar plant, aligning with its strategy to
focus on its core business of gold mining. This agreement allows Blanket Mine
to maintain access to clean energy while enabling Caledonia to reallocate
capital for growth.

 

The construction of the solar plant was initially financed by a registered
offering of Caledonia's shares in the USA in 2020, which raised $13 million
through the issue of 597,963 shares. Since its commissioning in February 2023,
the solar plant has generated over 57,722MWh of power.

 

Caledonia's consolidated net debt as at April 9, 2025 (i.e. immediately before
the transfer of the cash consideration on April 10, 2025) was $3.8 million
(December 31, 2024: net debt $8.7 million).  Accounting for receipt of the
cash consideration, Caledonia's pro forma consolidated net cash balance was
$18.6 million.

 

Mark Learmonth, Chief Executive Officer of Caledonia, commented:

 

"We are pleased to have completed the sale of the solar plant, strengthening
our cash position and enabling us to redeploy capital towards our core gold
mining and expansion operations.

 

"By selling the plant for $22.35 million, Caledonia realises a profit on the
$14.3 million construction cost. Importantly, we retain the exclusive energy
off-take agreement, ensuring that approximately 20% of Blanket Mine's daily
electricity needs continue to be met by renewable energy."

 

Matthew Tilleard, Managing Partner at CrossBoundary Energy, said:

 

"Energy provision is an expensive challenge for the mining sector in Africa.
The acquisition of Blanket Mine's solar PV facility is part of CrossBoundary
Energy's ongoing commitment to providing the best energy solutions for the
sector. Through a power purchase agreement, Blanket Mine will continue
utilising the benefits of distributed renewable power, whilst freeing up
capital for its value-generating mining activities."

 

 

 

 

 

 Caledonia Mining Corporation Plc

 Mark Learmonth                                              Tel: +44 1534 679 800

 Camilla Horsfall                                            Tel: +44 7817 841 793
 Cavendish Capital Markets Limited (Nomad and Joint Broker)

 Adrian Hadden                                               Tel: +44 207 397 1965

 Pearl Kellie                                                Tel: +44 131 220 9775
 Panmure Liberum (Joint Broker)

 Scott Mathieson/ Ailsa MacMaster                            Tel: +44 20 3100 2000
 Camarco, Financial PR (UK)

 Gordon Poole                                                Tel: +44 20 3757 4980

 Elfie Kent

 Fergus Young
 3PPB (Financial PR, North America)

 Patrick Chidley                                             Tel: +1 917 991 7701

 Paul Durham                                                 Tel: +1 203 940 2538
 Curate Public Relations (Zimbabwe)

 Debra Tatenda                                               Tel: +263 77802131

 IH Securities (Private) Limited (VFEX Sponsor - Zimbabwe)

 Lloyd Mlotshwa                                              Tel: +263 (242) 745 119/33/39

Note: The information contained within this announcement is deemed by the
Company to constitute inside information under the Market Abuse Regulation
(EU) No. 596/2014 ("MAR") as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 and is disclosed in accordance with the
Company's obligations under Article 17 of MAR.

 

 

Cautionary Note Concerning Forward-Looking Information

Information 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:  the continued supply and sale of
power under the power purchase agreement, retaining the exclusive supply of
the solar power, ensuring that approximately 20% of Blanket Mine's daily
electricity needs continue to be met by renewable energy and reallocating
capital for growth.  The forward-looking information contained in this news
release 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:
the proper maintenance and operation of the solar plant by the new owner, the
establishment of estimated resources and reserves, the grade and recovery of
minerals which are mined varying from estimates, success of future exploration
and drilling programs, reliability of drilling, sampling and assay data, the
representativeness of mineralization being accurate, success of planned
metallurgical test-work, capital availability and accuracy of estimated
operating costs, obtaining required governmental, environmental or other
project approvals, inflation, changes in exchange rates, fluctuations in
commodity prices, delays in the development of projects, the assessment of the
existing capital intensity of the Bilboes gold project and Caledonia's
experience of project development in Zimbabwe 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 the completion of
the sale, 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.

 

This news release is not an offer of the shares of Caledonia for sale in the
United States or elsewhere. This news release shall not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any sale of
the shares of Caledonia, in any province, state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such province, state or
jurisdiction.

 

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