Caledonia to raise more funds than anticipated on VFEX
Caledonia Mining Corporation PLC has decided to raise more funds than originally anticipated in respect of its Victoria Falls Stock Exchange (VFEX) listing.
Vongai Mbara
VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE), launched late last year as part of efforts to attract global capital as well as help restore foreign investor confidence in Zimbabwe’s capital markets.
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.
“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,” Caledonia’s chief executive Steve Curtis said in a statement.
He added, “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.
“The anticipated listing highlights our continued commitment to Zimbabwe. We are excited about this next stage, and I would like to thank everybody for their continued support.”
Curtis noted that Caledonia will announce the exact number of new shares, and depositary receipts, to be issued once subscription monies have been deposited and formalities have been completed in the next few days.
He added that once the securities are issued, the Company’s depositary in Zimbabwe will liaise with the VFEX to have the depositary receipts admitted to electronic trading in Zimbabwe and dealings will commence.
“The listing and dealings are expected to occur on or about December 2, 2021,” said Mr Curtis.