Caledonia Mining completes takeover of Bilboes gold project

Caledonia Mining announced on Friday that, following the satisfaction of conditions precedent, it has completed the acquisition of Bilboes Gold.

The AIM-traded firm said Bilboes Gold is the parent company which owns, through its Zimbabwe subsidiary Bilboes Holdings, the Bilboes gold project in Zimbabwe.

It first announced its acquisition plans on 21 July last year.

“As a reminder, the total consideration payable is, subject to adjustment, 5,123,044 shares representing approximately 28.5% of Caledonia's fully diluted share capital and a 1% net smelter royalty on the project's revenues,” the board said in its statement.

“Based on the last trading day's closing share price on NYSE American of $12.82 per share, the value of the maximum number of new shares that could be issued as consideration if there is no adjustment is currently $65,677,424.”

At 1611 GMT, shares in Caledonia Mining Corporation were flat at 1,070p.

Reporting by Josh White for Sharecast.com.