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Business Reporters

Caledonia Mining Corporation Plc, which owns Blanket Gold Mine in Gwanda, has begun the process of listing on the Victoria Falls Stock Exchange (VFEX). 

The bourse, which is a subsidiary of the Zimbabwe Stock Exchange (ZSE), was established last year in October as an off-shore biased financial services centre.

 Its setting up would go a long way in buttressing the Victoria Falls Special Economic Zone. In a statement, Caledonia said listing on the VFEX, which is for foreign as well as domestic investors in Zimbabwe with all transaction denominated in US dollars, would be conditional upon market conditions. 

“Caledonia announces it is commencing the process of pursuing a listing of depositary receipts representing the company’s shares on the VFEX in Zimbabwe,” it said. 

“Such a listing would be conditional upon market conditions and the implementation of positive proposals made by the Zimbabwe authorities in respect of improved payments in US dollars for gold produced at the company’s majority owned Blanket Mine.”

The mining group said the proposed VFEX listing demonstrates Caledonia’s continued commitment to Zimbabwe and would allow Caledonia and Blanket’s employees in the country to participate more easily as shareholders. 

“Securing the VFEX listing is expected to take place during the course of 2021 and would be effected by a placing in Zimbabwe of depositary receipts to raise approximately US$3 million (to satisfy the requirements for local shareholder spread) and a subsequent introduction,” said the company. 

“The proceeds of the placing would be used for general corporate purposes,” it said.