StockMarketWire.com - Caledonia said Tuesday it had entered into a legally binding sale agreement with Fremiro to purchase the latter's 15% shareholding in Blanket Mine.

Under the terms of deal, Caledonia had agreed to purchase Fremiro's 15% shareholding in Blanket for a gross amount of $16.667m.

The gross amount of $16.667m would be settled through the cancellation of the loan between the two entities which stood at $11.467m as at June 30, 2018; and the issue of 727,266 new shares in Caledonia at an issue price of $7.15 a share.

The completion of the purchase would require, amongst other things, approvals from various Zimbabwean regulatory authorities, Caledonia said.

On completion of the transaction, Caledonia would hold a 64% stake in Blanket and Fremiro would hold 6.42% of Caledonia's diluted equity.


At 10:06am: [LON:CMCL] Caledonia Mining Corp share price was +9p at 428p



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