JOHANNESBURG (miningweekly.com) – Caledonia Mining, which is listed on the Aim market of the LSE, as well as the OTCQX and TSX, on Wednesday said it was now seeking a fourth listing on the NYSE MKT.
The gold miner, which owns 49% of the Blanket mine, in Zimbabwe, believes the listing will increase trading liquidity, while enabling access to a larger pool of potential US investors.
"This is a further step towards the transformation on which the business embarked with the adoption of the investment plan at Blanket in October 2014.
“The main component of this plan is the construction of the new central shaft, which is expected to come into production in 2018, after which we expect production to ramp up to 80 000 oz of gold by 2021,” Caledonia chairperson Leigh Wilson pointed out.
He added that the increased gold production at Blanket, at a lower cost per ounce, would result in attractive cash returns for both the company's shareholders and Blanket mine's local partners and stakeholders.
LISTING REQUIREMENTS
The minimum share price threshold for listing on the NYSE MKT is $2 a share; in addition to this requirement, a share price of over $5 a share is generally considered necessary to satisfy the eligibility requirements of institutional and retail investors in the US.
Caledonia requested its shareholders approve a share consolidation on the effective basis of one common share for every five common shares held, which is expected to help it exceed the share price thresholds.
The share consolidation will be conducted through a two-stage process comprising a consolidation into one common share for every 100 common shares held followed by an immediate division of such consolidated shares into 20 common shares for every one consolidated common share. The net effect of these two steps will be an effective five into one share consolidation.