Caledonia Mining declares 11th dividend

Caledonia Mining Corporation declared its 11th dividend on Tuesday morning, the first under its revised dividend policy, and one which its board hoped would be the last under the Canada Revenue Agency's jurisdiction.

The AIM-listed miner said a dividend of $0.01125 would be paid on each of the company's common shares held at 2200 GMT on January 15.

It would be the first dividend paid in US dollars, since the company announced it would be reporting in that currency on 16 December 2015 - a change from Canadian dollars.

"The quarterly dividend of 1.125 US cents is Caledonia's revised dividend policy and represents an annual dividend of 4.5 US cents per annum," the company's board said in a statement.

Caledonia said it would work to maintain a strong financial position, so it may uphold that annual dividend without needing to raise third-party finance.

The miner also indicated the dividend was likely the last to be taxed under the Canadian tax system, as it planned to re-domicile to Jersey, pending shareholder approval.

"If shareholders approve the re-domicile from Canada to Jersey and the re-domicile is subsequently implemented, it is anticipated that all future dividends will be paid without the deduction of Canadian withholding tax," the board said.