Caledonia Mining Corporation PLC’s (LON:CMCL) 49% gold mine subsidiary has sold US$3.2mln worth of Zimbabwe government bonds.
The bills were issued to the Blanket Mine in 2015 and replaced the Special Tradeable Gold Bonds issued in 2009. The bonds were issued as part consideration for gold sales that were made by Blanket in 2008.
Gross sales proceeds will be subject to Zimbabwean income tax at 25.75%.
Steve Curtis, Caledonia’s chief executive, said: “The Bills that were issued to Blanket Mine, and that have now been sold, date back to the environment which prevailed in Zimbabwe in 2008.
“Blanket Mine has sold all of its production to the government-owned refinery in Zimbabwe since January 2014, and it has always received payment in full and on time. The sale of the Bills is a continuation of the process to dispose of non-core assets.”
