HARARE – New York Stock Exchange listed Zimbabwean based gold mining giant Caledonia Mining Corporation Plc has announced the successful completion of the sale of its subsidiary, Caledonia Mining Services (Private) Limited (CMS), to CrossBoundary Energy Holdings (CBE) for a pre-tax cash consideration of US$22.35 million.
The transaction, which closed on April 11, 2025, involves the 12.2MWac solar plant owned and operated by CMS, which supplies power to Caledonia’s Blanket Mine.
According to the company, which is also listed on the Victoria Falls Stock Exchange and London Stock Exchange, the sale aligns with Caledonia’s strategic objective to concentrate on its core gold mining operations and growth initiatives.
The company initiated a bidding process in September 2024, managed by IH Advisory, its Zimbabwean financial advisors, which culminated in the agreement with CBE.
Under the terms of the sale, Blanket Mine will continue to receive power from the solar plant through an exclusive power purchase agreement.
This, according to the company, ensures a consistent supply of renewable energy, meeting approximately 20% of the mine’s daily electricity requirements.
Caledonia initially financed the construction of the solar plant through a US$13 million share offering in the USA in 2020. The plant commenced operations in February 2023 and has since generated over 57,722MWh of power.
The sale for US$22.35 million represents a profit for Caledonia over the $14.3 million construction cost.
As of April 9, 2025, the company’s consolidated net debt stood at US$3.8 million (compared to US$8.7 million at the end of 2024). Following the receipt of the cash consideration on April 10, 2025, Caledonia’s pro forma consolidated net cash balance is US$18.6 million.
Mark Learmonth, Chief Executive Officer of Caledonia, stated that the sale allows the company to “redeploy capital towards our core gold mining and expansion operations” while ensuring Blanket Mine retains access to renewable energy.
“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,” Learmonth stated.
“By selling the plant for US$22.35 million, Caledonia realises a profit on the US$14.3 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.”
Matthew Tilleard, Managing Partner at CrossBoundary Energy, said the acquisition is part of their commitment to providing energy solutions for the African mining sector, allowing Blanket Mine to focus on its “value-generating mining activities” through the power purchase agreement.
“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,” Tilleard said.
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