Caledonia Mining Corporation has increased its shareholding threshold in Blanket Mine to 64 percent after purchasing an additional 15 percent shares from Fremino Investments.
This follows reversal of the Indigenisation and Economic Empowerment Act by President Emmerson Mnangagwa’s administration.
In a bid to comply with the Act signed in 2008, Caledonia had sold 41 percent from its total threshold to three indigenous companies, Fremiro: 15 percent, The National Indigenisation and Economic Empowerment Fund: 16 percent and Blanket Employee Trust Services (Private) Limited: 10 percent in 2012.
In a statement released today, the company highlighted that the deal culminated from a US$11.467 million loan which had been issued to Fremiro Investments.
“Gross consideration for Fremiro’s shareholding in Blanket is $16.667 million which has been settled through the cancellation of an $11.467 million loan between Fremiro and Caledonia and the issue of 727,266 new shares in Caledonia at an issue price of $7.15 per share.
“Consequently, Caledonia’s shareholding in Blanket is 64 per cent and Fremiro holds approximately 6.3 per cent of Caledonia’s issued share capital,” said Caledonia in a statement.
“I am pleased to report that the Company has concluded its transaction with Fremiro to increase Caledonia’s shareholding in Blanket to 64 per cent. I would like to thank Fremiro for its support as a shareholder in Blanket during the last seven years and am confident that Fremiro, now as a significant shareholder in the Company, will continue to be supportive of Caledonia’s business going forward,” Caledonia further noted.