NYSE American- and Aim-listed Caledonia Mining Corporation has entered into an at-the-market (ATM) sales agreement with US financial services firm Cantor Fitzgerald & Co (Cantor).
Under the terms of the agreement, Caledonia may sell up to $13-million worth of shares.
The agreement will see any sales of shares occurring by means of ordinary brokers’ transactions or block trades, with sales only being made on the NYSE American at market prices.
Cantor, acting as sales agent, may conduct sales for the benefit of Caledonia, should the company elect to initiate a transaction or transactions, dependent on market conditions and such other terms as the company may specify.
It is possible, and indeed likely, that multiple transactions could be effected under the ATM sales agreement over time.
Caledonia, which owns and operates the Blanket gold mine, in Zimbabwe, expects to use the amount of any net proceeds from the sale of its shares for investment in the construction of a solar power plant to supply electricity to the mine.