LONDON (Alliance News) - Caledonia Mining Corp PLC on Monday said its Blanket Mine subsidiary has sold Zimbabwe government treasury bills for a total of USD3.2 million.
The treasury bills were issued to Blanket, in which Caledonia has a 49% stake, in 2015 and replaced the special tradeable gold bonds issued to the company in 2009.
Those bills were issued by the government as part consideration for gold sales made by Blanket in 2008. The value of the debt securities had been fully written down by the company in the past.
"The bills that were issued to Blanket Mine, and that have now been sold, date back to the commercial environment which prevailed in Zimbabwe in 2008. This bears no relationship to the existing commercial environment in the country," said Caledonia Chief Executive Steve Curtis.
"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," Curtis added.
Caledonia shares were down 1.5% to 67.5 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Caledonia Min (CMCL)