CALEDONIA Mining Corporation (Caledonia) says its unsecured $4 million overdraft facility in Zimbabwe has remained undrawn.
BY MTHANDAZO NYONI
“The company currently has no plans to raise equity. Blanket has an unsecured $4 million overdraft facility in Zimbabwe, which is repayable on demand. As at June 30, 2019, the facility was undrawn,” the company said in its management’s discussion and analysis of the consolidated operating results and financial position for the quarter ended June 30.
“In December 2018, Blanket drew down a $6 million three-year facility, which is re-payable by a single bullet payment in December 2021,” it said.
Unsecured overdraft facility does not require asset pledges. For instance, if you earn at least $30 000 a year, your bank can grant an unsecured credit of up to four times your monthly income. This includes the combined credit on your credit cards and other unsecured credit facilities.
“Caledonia financed all its operations using funds on hand and those generated by its operations. No equity financing took place in the quarter other than the issue of 13 137 new shares in settlement of certain LTIP awards to a member of staff,” it said.
Caledonia is an exploration, development and mining corporation focused on Zimbabwe.
Following the implementation of indigenisation at the Blanket Mine in September 2012, its primary asset is a 49% legal ownership in Blanket, an operating gold mine in Zimbabwe.
Pursuant to the signing of an agreement announced on November 6, 2018, Caledonia intends to purchase a further 15% of Blanket from one of the mine’s indigenous shareholders.
The transaction remains subject to approvals from various Zimbabwean regulatory authorities.