Maravi

(NEWZIMBABWE) Caledonia hands over empowerment shares

Caledonia hands over empowerment shares
21/06/2012 00:00:00
by Business Reporter

BLANKET Gold Mine has concluded a deal for the transfer of 16 percent of its shareholding to the National Indigenisation and Economic Empowerment Fund for about US$12 million.

Blanket’s Canada-based holding company, Caledonia Mining Corporation, said the deal was part of the transfer of 51 percent of the mine’s shareholding to locals as required under the Zimbabwe’s economic empowerment programme.

“A conditional agreement has been signed for the sale of 16% of Blanket for a consideration of US$11.742 million to NIEEF,” Caledonia said in a statement Thursday.

“The agreement is in accordance with the Memorandum of Understanding ("MoU"), which was signed with the Government of Zimbabwe on February 20, 2012 pursuant to which Indigenous Zimbabweans will acquire 51% ownership of the Blanket Mine for a paid transactional value of US$30.09 million.

“This agreement is in addition to the following conditional agreements which have already been signed in accordance with the terms of the MoU and as disclosed in previous news releases.”

The company has since agreed the sale of a 15 per cent stake to a consortium for US$11 million as part of its compliance with the indigenisation laws. A 10 per cent stake was also sold to the Blanket Employee Trust for US$7.3 million.

In addition the company donated a further 10 per cent of Blanket to the Gwanda Community Share Ownership Trust, established for the benefit of the local community.
Blanket will also make a non-refundable donation of US$1 million to this trust.

Labels: CALEDONIA MINING CORPORATION, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE)

posted by MrK @ 3:22 AM