Caledonia to restart key Bilboes operation
VICTORIA Falls (VFEX) and New York (NYSE) stock exchange-listed resources firm, Caledonia Mining Corporation said it has plans to restart an oxides operation at Bilboes Gold near Bulawayo.
Caledonia recently took over Bilboes Gold in a multimillion-dollar deal.
In a market update, Caledonia said the plan was to create a cash-generating operation within a period of six months.
Under the Bilboes takeover deal inked in July, the parties agreed on US$53,3 million.
Bilboes will be the second gold asset to be operated by Caledonia in Zimbabwe.
The firm already controls Blanket Mine in Gwanda, which is presently the country’s biggest gold producer.
Bilboes is the holding company for a large, high-grade, open-puttable gold resource in Zimbabwe.
“The completion of the transaction is subject to several conditions, which we are currently working on, but once achieved we can prepare a feasibility study to identify the most judicious way to commercialise the project with regard to the availability of funding on acceptable terms.”
Formerly owned by Anglo American Corporation, Bilboes is a large, high-grade gold deposit located about 75km north of Bulawayo.
Bilboes Gold is owned by Toziyana Resources which controls 50% shareholding, Baker Steel Resources Trust (24%) and Infinite Treasure with 26% stake.
Upon successful completion of the transaction, Victor Gapare, a prominent Zimbabwean mining entrepreneur, who controls Toziyana Resources, will be appointed executive director of Caledonia.