LONDON (ShareCast) - (Sharecast News) - Caledonia Mining announced on Monday that it has completed the sale of its 12.2MWac solar plant in Zimbabwe for $22.35m, as part of a strategic move to focus on its core gold mining operations and unlock capital for future growth.
The AIM-traded firm said the transaction, finalised on 11 April, involved the disposal of Caledonia Mining Services Private Limited - owner and operator of the solar plant - to CrossBoundary Energy Holdings.

It said the deal was conducted for a pre-tax cash consideration, and followed a competitive bidding process managed by IH Advisory, the company's Zimbabwean financial adviser.

Although the plant had been sold, it would continue to supply power to Blanket Mine under an exclusive power purchase agreement.

Caledonia said that would ensure a continued supply of renewable energy to the mine while allowing it to reallocate capital more effectively.

The solar plant, commissioned in February 2023, had generated over 57,722 megawatt hours of electricity to date.

It was initially financed through a $13m share offering in the US in 2020.

Following receipt of the proceeds, Caledonia said its pro forma consolidated net cash balance stood at $18.6m, compared with net debt of $3.8m immediately prior to the transfer and $8.7m as at 31 December.

"We are pleased to have completed the sale of the solar plant, strengthening our cash position and enabling us to redeploy capital towards our core gold mining and expansion operations," said chief executive officer Mark Learmonth.

"By selling the plant for $22.35m, Caledonia realises a profit on the $14.3m construction cost. Importantly, we retain the exclusive energy off-take agreement, ensuring that approximately 20% of Blanket Mine's daily electricity needs continue to be met by renewable energy."

At 0952 BST, shares in Caledonia Mining Corporation were up 0.4% at 994p.

Reporting by Josh White for Sharecast.com.

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