Caledonia to maintain quarterly dividend policy The mining group, which owns Blanket Mine in Gwanda, last week indicated it was set to acquire Bilboes Gold Limited for US$53,3 million.

Golden Sibanda Senior Business Reporter
TORONTO Stock Exchange (TSX) listed Caledonia Mining Corporation, whose main asset is 49 percent stake in Blanket gold mine in Zimbabwe, declared a quarterly dividend of 6,87 US cents per share.

The company in line with its strategy of maximising shareholder value, which included quarterly dividend policy adopted in 2-14, would maintain its dividend policy of 27,5 US cents. Caledonia, which intends to increase its stake in Blanket to 64 percent, pays its annual dividend target after every quarter.

“Caledonia Mining Corporation Plc (‘Caledonia’ or the ‘Company’) today announces that its board of directors has declared a dividend of six and seven eighths United States cents (US$0,06875) on each of the Company’s common shares,” Caledonia said in a statement on Wednesday.

Caledonia’s shares are listed on the New York Stock Exchange (America) and on the Toronto Stock Exchange (TSX) and depositary interests representing the shares are traded on London’s AIM. Blanket Mine plans to increase gold production from 56 136 ounces in 2017 to approximately 80 000 ounces by 2021, Blanket Mine’s target production for 2018 is 54 000 to 56 000 ounces. Caledonia expects to publish its results for the quarter to December 31, 2018 on or around March 14, 2019.

The mining company said in November that it had entered into a legally binding sale agreement to acquire Fremiro’s 15 percent shareholding in Blanket Mine, located in Matabeleland South. Fremiro acquired its 15 percent shareholding in Blanket when Caledonia implemented transactions in 2012 in compliance with the Zimbabwean Indigenisation and Economic Empowerment Act (the “Act”).

As part of the transactions, Caledonia sold 41 percent of Blanket Mine to the following indigenous Zimbabwean shareholders: Fremiro 15 percent, National Indigenisation and Economic Empowerment Fund 16 percent and Gwanda community ownership trust 10 percent.

Following amendments to the Act passed in March 2018 which removed the 51 percent indigenisation requirement for gold mining businesses, Caledonia and NIEEF have agreed to enter into a transaction whereby Caledonia purchases Fremiro’s 15 percent shareholding in Blanket.

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