Caledonia Mining increase their stake in Blanket Mine to 64%

Caledonia Mining increase their stake in Blanket Mine to 64%

Caledonia Mining (LON:CMCL) have told shareholders that they have increased their holdings in the Blanket gold mine.

Caledonia initially held a 49% stake in the mine and this deal was approved in November 2018, however was only cleared last November following regulatory approval.

The firm on Tuesday told the market that it has increased its holding to 64%, which will please shareholders.

The miner will be paying $16.7 million to partner Fremiro Investments Pvt Ltd.

Caledonia is paying in both shares and the cancellation of a loan between Fremiro and Caledonia. Fremiro will have a 6.3% stake in Caledonia following the sale.

Steve Curtis, Chief Executive Officer, said:

“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 grow from strength to strength

Last week, the firm saw their shares bounce following record production figures from its Blanket Mine.

The mine produced 16,875 ounces of gold in the last quarter of 2019, a record for the firm. The figure was 24% higher than the quarter before and 13% higher year-on-year.

The firms total production in 2019  was 55,182 beating internal guidance which was pitched between 50,000 and 53,000 ounces.

The fact that Caledonia have increased their stake in the Blanket Mine following record production figures last week, is an impressive accomplishment and the firm will hope that the production can continue throughout 2020.

Looking to 2020, the Jersey-based company sees gold production between 53,000 ounces and 56,000 ounces.

Curtis said: “I am delighted to report a production record at Blanket of 16,867 ounces in the fourth quarter. An improvement in the electricity supply and vigilant focus on grade control and production tonnage have resulted in an excellent production result for the final quarter of which our entire operational staff can be justifiably proud.

Shares in Caledonia trade at 651p (-0.50%). 21/1/20 13:43BST.