By 
Caledonia Mining Corporation Plc has announced the successful completion of the sale, on April 11, 2025, of its Zimbabwean subsidiary, Caledonia Mining Services (Private) Limited (“CMS”), to CrossBoundary Energy Holdings (“CBE”) for a pre-tax consideration of $22.35 million payable in cash.
CMS owns and operates the 12.2 megawatt alternating current solar plant that supplies power to the Blanket mine, in which Caledonia holds a 64% stake, 100% stakes in the Bilboes Sulphide Project and the Motapa and Maligreen gold mining claims, all situated in Zimbabwe.
By Gamuchirai Mapako
Matthew Tilleard, Managing Partner at CrossBoundary Energy, said:
“Energy provision is an expensive challenge for the mining sector in Africa. The acquisition of Blanket Mine’s solar PV facility is part of CrossBoundary Energy’s ongoing commitment to providing the best energy solutions for the sector. Through a power purchase agreement, Blanket Mine will continue utilising the benefits of distributed renewable power, whilst freeing up capital for its value-generating mining activities.”
Caledonia’s Zimbabwe financial advisers, IH Advisory, successfully conducted a bidding procedure to sell the solar project to CBE in September 2024. This aligns with the company’s objective to focus on its main business of gold mining. This deal supports Blanket Mine’s access to sustainable energy while allowing Caledonia to reallocate capital for growth.
Under the terms of the deal, the plant will continue to provide the mine power under an exclusive power purchase agreement.
“We are pleased to have completed the sale of the solar plant, strengthening our cash position and enabling us to redeploy capital towards our core gold mining and expansion operations,” said Chief Executive Officer Mark Learmonth.
“By selling the plant for USD22.4 million, Caledonia realises a profit on the USD14.3 million construction cost. Importantly, we retain the exclusive energy off-take agreement, ensuring that approximately 20% of Blanket Mine’s daily electricity needs continue to be met by renewable energy.”
Caledonia’s net debt as of Wednesday last week, before the transfer of proceeds from the sale, was USD3.8 million. This compared to USD8.7 million in net debt back on December 31.
Comments