Caledonia starts selling Blanket gold directly ove...

Caledonia starts selling Blanket gold directly overseas

Zim Now Writer

Caledonia Mining Corporation announced this Thursday that it has started selling gold produced from its Blanket Mine in Zimbabwe directly to a refiner outside the country.

“This arrangement is a big milestone for Caledonia and further demonstrates the pragmatic approach of the Zimbabwe authorities to resolve commercial issues facing gold producers,” said CEO Mark Learmonth.

Learmonth said Caledonia had been exploring various avenues to achieve the direct export of its gold since listing on the Victoria Falls Stock Exchange, and completing the Bilboes acquisition.

“In the 10 years or so during which Blanket Mine has sold its gold in-country - initially to the RBZ, and more recently to FGR - we have experienced very few difficulties in receiving payment within the prescribed period; when difficulties have arisen, they have been resolved rapidly.

Unrefined gold continues to be processed at Fidelity Gold Refinery on a toll-treatment basis in accordance with the requirements of the Zimbabwean government for in-country refining, Caledonia said it had found a way to sell refined gold outside the country.

The export of the refined gold was facilitated by Fidelity, which holds a gold dealing licence.

Learmonth said the receiving foreign refinery will undertake the final refining process, and sell the gold on behalf of Caledonia.

The proceeds from the gold sales are then received by Caledonia directly into its bank account in Zimbabwe within a few days of delivery to the final refinery.

Caledonia said the arrangement complied with the current requirements to pay a 5% royalty, and ensured that Blanket Mine received 75% of its revenues in US dollars with only 25 % in Zim dollars

Learmonth said the new arrangement will help Caledonia in capitalising its plans in Zimbabwe - initially at Bilboes and then Motapa and Maligreen.

“This new marketing arrangement should make it easier for Caledonia to arrange debt facilities with funders outside Zimbabwe which may be used to support the construction of the new mines.”