Caledonia Mining Corporation Plc has announced a conditional agreement to sell its 12.2-MW solar park, which supplies power to its gold mine in Zimbabwe, to CrossBoundary Energy Holdings (CBE) for USD 22.35 million in cash. The transaction is set to enhance the company's financial position while allowing it to refocus on its core mining operations.
Under the terms of the sale, the solar farm will continue to supply electricity to Blanket Mine through a power purchase agreement (PPA), ensuring that approximately one-fifth of the mine's daily electricity requirements are met by solar energy.
Furthermore, CBE has been invited to submit a tender for the potential expansion of the solar facility, indicating opportunities for further development.
The transaction will yield a profit for Caledonia, considering the solar park was constructed at a cost of USD 14.3 million. The company financed this project through a USD 13 million share offering in 2020. Following the sale, Caledonia plans to reinvest the capital into its primary mining operations, allowing management to concentrate on the company's key activities.
CBE, founded by the CrossBoundary Group, specializes in providing commercial-industrial solar solutions throughout Sub-Saharan Africa.
The completion of the sale is contingent upon certain conditions, including the acquisition of local regulatory approvals and the installation of upgraded equipment, which are expected to take several months to finalize.
