Caledonia Buckles Under Pressure, To Sell 16% To NIEEF

According to the Indigenisation Act locals should have controlling shareholding in foreign owned companies operating in Zimbabwe.

NIEEF will have to fork out US$11,7 million for the stake.

It said the disposal of the stake is part of the Canadian firm’s  wider accord to transfer 51% of gold mine to indigenous Zimbabweans for a total of US$30,1 million.

Caledonia said it had also agreed to sell 15% to a local consortium and 10% to Blanket Mine Employee Trust.

Meanwhile, a 10% share of the mine will be donated to the Gwanda Community Share Ownership Trust, the Canadian firm said.

“The company has agreed to finance the deals at a rate of 10% above the 12-month London interbank offered rate, with the loans being repaid from future dividends,” it said.