Multi-asset gold producer Caledonia Mining Corporation, has postponed the closing of the Zimbabwe placing by one week from last Friday due to greater than expected demand from local institutional shareholders.

On March 24, 2023, the company, which is listed on the Victoria Falls Stock Exchange, proposed to issue new common shares with no par value for a price of roughly US$13,74 per share in order to raise about US$10 million.

The placement to collect US$10 million in the United Kingdom and South Africa came to an end on Friday of last week. The business was able to raise about US$10,6 million before expenses.

A total of 781 749 placing shares were placed with domestic and international institutional and sophisticated investors. Cenkos, Liberum, and Standard Bank acted as joint book runners in relation to the placing.

In addition to the UK and South Africa placing, Inter Horizon Securities undertook, on behalf of Caledonia, a placing in Zimbabwe to raise approximately US$3 million.

The company, which controls Blanket Mine in Gwanda, said existing and new Zimbabwean institutional shareholders required extra time to attend to their own administrative requirements.

 “It is expected that due to strong demand from existing Zimbabwean institutional shareholders, the Zimbabwe placing will raise in excess of US$3 million,” Caledonia said in a shareholder update on Friday.

“A further announcement will be made next week regarding the closing of the Zimbabwe placing, the funds raised and the shares and Zimbabwe depositary interests to be issued pursuant to the placing.”

Caledonia said the net proceeds of the fundraise will be used to strengthen its balance sheet and provide working capital flexibility to accelerate planned work at the three new gold projects currently being undertaken in Zimbabwe.

 “This modest fundraise allows us to accelerate progress on our very attractive package of exploration and development assets in Zimbabwe. In addition, I am pleased to see a range of institutional investors who support Caledonia’s long-term vision join the share register,” Caledonia chief executive officer, Mark Learmonth, said.

The company, which is also listed in New York and London, acquired Motapa in November last year; this asset is seen as having great potential and being crucial to the company's strategic goals.

Following the fulfilment of prerequisite conditions, Caledonia completed the acquisition of the Bilboes Gold Project in January 2023.

According to a feasibility assessment performed by the vendors, an open-pit gold mine could have a 10-year mine life and produce an average of 168 000 ounces of gold annually.