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Gold miner Caledonia Mining Corporation has announced the conclusion of a placing that raised $5.8-million on the Victoria Falls Stock Exchange.

The Zimbabwe placing received strong support from new and existing institutional investors, with a total 423 951 Zimbabwe Depository Receipts (ZDRs) having been placed at a price of $12.74 apiece.

Additionally, a total 781 749 placing shares were admitted to trading on the LSE’s Aim on March 30, which, together with the ZDRs, amounts to 1.2-million common shares having been placed in the form of depositary interests, ZDRs and fundraising, totalling $16.5-million before expenses.

The net proceeds of the fundraise, together with Caledonia’s existing cash reserves, has strengthened the balance sheet and provides the company with working capital flexibility to accelerate planned work at three new gold projects in Zimbabwe.

Moreover, further to Caledonia announcing on January 6 its acquisition of Bilboes Gold, it has instructed the issue of a further 256 152 shares.

Under the terms of the transaction, 5% of the total consideration shares, being deferred shares, were retained by Caledonia so that adjustments to the purchase price could be calculated after completion to account for any extraordinary liabilities incurred.

The 256 152 depository interests, representing the deferred shares, will be admitted to trading on Aim on or about April 14.

Following the issue of the deferred shares and the ZDRs, Caledonia has a total of 19.1-million shares in issue, all of which have voting rights.

Caledonia’s flagship asset is the Blanket mine in Zimbabwe. It is also developing the Maligreen, Motapa and Bilboes deposits.