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An announcement from Caledonia Mining ( (CMCL) ) is now available.
Caledonia Mining Corporation Plc has announced plans to raise $100 million through a private placement of convertible senior notes due 2033, with an option for initial purchasers to buy an additional $20 million of notes, subject to market conditions. The unsecured notes will pay semi-annual interest and be convertible into cash, Caledonia common shares or a combination of both, with key terms such as interest rate and conversion rate to be set at pricing. The company intends to use the proceeds to fund capped call transactions designed to limit dilution from any future share conversions and to provide financial flexibility for developing the Bilboes gold project in Zimbabwe as well as for general corporate and operational needs. Caledonia will enter capped call transactions with financial counterparties, whose associated hedging activity in the company’s shares and derivatives could influence the trading prices of both the equity and the notes, potentially affecting noteholders’ conversion economics and broader market dynamics around the stock.
More about Caledonia Mining
Caledonia Mining Corporation Plc is a gold production, exploration and development company focused on Zimbabwe. Its primary asset is the underground Blanket Gold Mine in Matabeleland South, where it holds a 64% interest, and it is also advancing several other Zimbabwean gold projects, including the Bilboes, Maligreen and Motapa projects.
Learn more about CMCL stock on TipRanks’ Stock Analysis page.