Caledonia Mining Corporation Plc today unveiled a conditional agreement to sell the 12.2-MW solar park powering its gold mine in Zimbabwe to Cross Boundary Energy Holdings (CBE) for USD 22.35 million (EUR 19.96m) in cash.
The solar farm will continue to sell its electricity to Blanket Mine via a power purchase agreement (PPA), so about a fifth of the mine’s daily electricity needs will continue to be met by solar power. In addition, CBE has been invited to tender for an expansion of the solar plant.
The sale will result in a profit for Caledonia on the USD-14.3-million construction cost of the plant. The company financed the construction of the facility by a USD-13-millions share offering in 2020.
Caledonia will redeploy the capital to its core business of mining and the sale will also allow its management to focus on the company’s main activities.
CBE, launched by the Cross Boundary Group, specialties in commercial-industrial solar solutions in Sub-Saharan Africa.
The sale is subject to conditions, including securing local regulatory approvals and the installation of some upgraded equipment, which are expected to take a few months to complete.