KEY POINTS
- Caledonia Mining’s ATM agreement with Cantor Fitzgerald enables a $50 million share sale to fund Bilboes Gold Project development.
- The Bilboes project’s technical report aligns with SEC S-K 1300, detailing mineral resources and open-pit mining feasibility.
- The block allocation of 4 million shares supports a strategic and flexible capital raising based on market conditions for operational growth.
Caledonia Mining Corporation Plc (“Caledonia” or the “Company”), a prominent mining group, has entered into an “At the Market” (ATM) sales agreement with Cantor Fitzgerald & Co (“Cantor”).
The agreement grants Caledonia the flexibility to sell up to $50 million worth of shares through ordinary brokers’ transactions or block trades on the NYSE American, with proceeds earmarked for the development of the Bilboes sulphide project.
Strategic move for growth
According to the disclosure on Victoria Falls Exchange, the ATM Sales Agreement positions Caledonia to raise capital efficiently, ensuring alignment with its growth and development objectives.
The Bilboes sulphide project, a critical element in Caledonia’s expansion strategy, is expected to benefit significantly from the anticipated net proceeds of these share sales.
In connection with the ATM Offering, Caledonia recently filed a technical report summary for the Bilboes Gold Project, prepared by DRA Projects (Pty) Ltd. This report, compliant with the United States Securities and Exchange Commission’s S-K 1300 regulations, outlines the project’s mineral resources and provides an initial assessment for implementing open-pit mining to recover gold mineralization.
Advancing feasibility studies
This latest filing builds upon previous reports and technical assessments, underscoring Caledonia’s commitment to transparency and regulatory compliance. A new feasibility study for the Bilboes project is slated for publication in the first quarter of 2025, further demonstrating the Company’s focus on advancing its operational capabilities.
Flexibility in capital raising
Unlike a traditional placement, the ATM Sales Agreement with Cantor is not underwritten, allowing Caledonia to initiate transactions based on prevailing market conditions. To facilitate potential share sales, an application has been made for a block listing of 4,000,000 new depositary interests, representing shares that will be issued as needed. This block admission is expected to become effective on or around December 18, 2024.
Confidence in the mining sector
This strategic capital-raising initiative highlights Caledonia’s commitment to unlocking the potential of the Bilboes sulphide project while maintaining operational resilience. With its eyes set on sustainable growth, the company’s approach underscores its dedication to driving value for investors and contributing to the broader mining sector’s evolution.
