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Nqobile Bhebhe, Online Reporter

Caledonia Mining Corporation has extended by a week its US$10 million fundraiser drive for Zimbabwe Placing citing overwhelming participation from existing and new local institutional shareholders.

To that end, it has accorded more time for participants to attend to their administrative requirements.

In a notice to shareholders on Friday, the giant mining firm now expects to raise in excess of US$3 million.

“Caledonia Mining Corporation Plc announces that, further to its announcements on March 24, 2023 regarding the Fundraise (as defined in the announcements), it has decided to extend the closing of the Zimbabwe Placing (as also defined in the announcements) from 12pm on March 31, 2023 by up to a week due to a higher than anticipated level of demand from existing and new Zimbabwean institutional shareholders who wish to participate but require extra time to attend to their own administrative requirements.

“It is expected that, due to strong demand from existing Zimbabwean institutional shareholders, the Zimbabwe Placing will raise in excess of US$3 million,” reads part of the notice

A further announcement, read the notice, will be made next week regarding the closing of the Zimbabwe Placing, the funds raised and the shares and Zimbabwe depositary interests to be issued pursuant to the Placing.

Last week on Friday, Caledonia said that it had surpassed its US$10 million fundraiser target by raising US$10,6 million hours after it announced the fundraising process that seeks to strengthen the company’s balance sheet and provide the company with working capital.

The mining firm which is angling towards becoming a multi-asset gold producer in Zimbabwe had announced on Friday morning that it proposes to raise approximately £8,1 million (approximately US$10 million) (before expenses), pursuant to a placing of new common shares of no par value at a price per Placing Share of £11,15 (approximately US$13,74).

The net proceeds of the fundraise, together with the company’s existing cash reserves and the future cash to be generated from its ownership of the producing and cash generative Blanket Mine and from the Bilboes oxide operation, will strengthen its balance sheet and provide working capital flexibility to accelerate planned work at the three new gold projects it is undertaking in Zimbabwe.