Zimbabwe-focused mining group Caledonia Mining Corporation’s move to delist from the Toronto Stock Exchange (TSX), is unlikely to affect future funding programmes for key asset — Blanket Gold Mine — as the group will remain on the more liquid New York Stock Exchange.
Caledonia is currently in the final stages of a funded expansion at the Blanket Gold Mine in Gwanda.
Completion of the gold producer’s Central Shaft by year-end is expected to boost its capacity to raise production to over 80 000 ounces (oz) by 2021 and make full use of the defined resource.
The group announced earlier this week that it had applied for a voluntary delisting from the TSX, effective as of the closing of trading on June 19, 2020.
But following the delisting, Caledonia’s shares will continue to be listed and trade on NYSE American LLC under the symbol ‘CMCL’.
The company said depositary interests representing shares will also continue to trade on AIM of the London Stock Exchange plc under the symbol ‘CMCL’.
“Since the Company’s shares were listed on the NYSE American in 2017, trading on that market has become increasingly dominant and it now provides the most liquid market for Caledonia’s shares,” said the group.
“Accordingly, the company believes that the financial and administrative costs associated with maintaining its listing on the TSX are no longer justified.”
Caledonia’s primary asset is a 49 percent interest in the Blanket Gold Mine.
In November 2018, the mining group announced the signing of a legally binding sale agreement to increase its holding in Blanket Mine to 64 percent, subject to receipt of, amongst other things, regulatory approvals.
The US$18 million Central Shaft expansion project is a transformational project for the company aimed at extending an additional 250 metres in depth including development on 34 and 38 levels, which will potentially secure Blanket Mine’s operating future for the next 20 years taking exploration potential into account.
Post the completion of the ongoing expansion project later this year, Caledonia has indicated plans to expand its portfolio in Zimbabwe by acquiring small brownfield operations.
As at the end of March 2020, the group had US$12, 5 million in cash.