Zimbabwean businessman and miner Mr Victor Gapare is set to be the biggest shareholder in New York Stock Exchange and Victoria Falls Stock Exchange listed gold-focused mining company, Caledonia Mining Corporation if a successful completion of the Bilboes gold project purchase sails through.
Rudairo Mapuranga
Late last month, Caledonia signed an agreement to purchase Bilboes for a consideration of 5.12m Caledonia shares (approximately 28.5% of Caledonia’s fully diluted equity) and a 1% NSR on the Project. According to Caledonia Chief Executive Officer Mark Learmonth, following the successful transaction, Gapare through one of his companies will become the major shareholder of Caledonia owning over 13% of the company.
“Toziyana Resources Limited, which is controlled by Mr Victor Gapare, will become Caledonia’s largest shareholder (13.5%). Following the successful completion of the Transaction, Mr Gapare will be appointed as an executive director of Caledonia,” Learmonth said.
Caledonia said that the Transaction is subject to several conditions including Bilboes Holdings receiving confirmation from the Zimbabwe authorities that it will, for the life of the mine, be able to export gold directly and retain 100 per cent of the sale proceeds in US dollars with no requirement to convert US dollar gold revenues into domestic currency.
Prior to completion of the transaction, Caledonia will enter into a tribute arrangement with Bilboes Holdings Limited to restart oxide mining operations which are currently on care and maintenance. This is expected to result in Bilboes returning to profitable operations within 6 months.
According to Learmonth, Bilboes Gold Project has the potential to become Zimbabwe’s largest gold producer, producing more than twice the current gold produced by a single mine, it has been reviewed.
“Bilboes has a NI43-101 compliant P&P Reserve of 1.79Moz @ 2.34 g/t and an M&I Resource of 2.56Moz @ 2.26 g/t and an additional Inferred mineral resource of 577Koz @ 1.89 g/t
“A Feasibility Study indicates the potential for an open-pit gold mine producing an average of 168Koz per year over a 10-year life of mine,” Learmonth said.