Fremiro Investments Private Limited, a Zimbabwean firm, which acquired a 15 percent stake in the Blanket Mine under the previous government’s indigenisation programme, has sold its stake to majority shareholder Caledonia Mining Corporation.
The original MOU between the two partirs was signed in November 2018 with the price US$16.7 million.
As a result of the deal, Caledonia Mining Corporation has increased its ownership in the Blanket gold mine in Zimbabwe to 64 percent.
The US$16.7 million consideration will be met by the cancellation of a US$11.5 million loan between the companies and the issue of shares equal to a 6.3 percent stake in Caledonia at the price at the time of US$7.15.
Commenting on the deal, Caledonia CEO Steve Curtis said:
“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.”