Issue of escrow shares in the acquisition of the Bilboes gold project
Caledonia Mining Corporation Plc (NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL) has recently received a notice to issue the Escrow Shares, which were withheld by the company to be issued to Shining Capital Holdings II LP instead in settlement of a commercial arrangement between Toziyana Resources Limited and Infinite Treasure Limited. It was required that the Reserve Bank of Zimbabwe (RBZ) approve this deal, which has now been secured, allowing the two parties to proceed with the issue of Escrow Shares.
After the issue of Escrow Shares, Shining Capital will hold a total of 1,827,818 shares, equating to 9.88% of Caledonia’s fully diluted share capital. This transaction will bring Caledonia’s total number of common shares to 18,506,156, all of which have voting rights.
It is important to note that this figure does not include any shares that will be issued pursuant to the Zimbabwe Placing, an update on which is expected to be announced on March 31, 2023. The figure of 18,506,156 common shares can be used by shareholders to determine their interest in or change to their interest in the company.
Application for the admission of depositary interests representing the Escrow Shares to trading on AIM has been made, with the anticipation of trading in such securities to commence on April 4, 2023. However, it is expected that the natural continuation of the process of retaining 5% of the total consideration shares, the Deferred Shares, will take place shortly, and further shares will be issued in due course.
Overall, Caledonia Mining Corporation’s acquisition of Bilboes Gold Limited and its recent transaction with Shining Capital Holdings II LP represent a significant move for the company. Shareholders will undoubtedly be looking at this development closely and monitoring the impact on the market.