Canadian miner mulls buying mothballed gold assets in Zimbabwe – by Felix Njini (Bloomberg News – October 5, 2020)

Caledonia Mining Corp. said it’s in talks to acquire assets that would expand its gold-mining operations in Zimbabwe.

The Toronto-based gold producer is targeting both privately held assets and mothballed mines owned by the state, according to spokesman Maurice Mason. He declined to name the companies Caledonia was talking to, but said the miner hopes to make an announcement on at least one of the assets by the end of this year.

Acquisitions could help Caledonia boost its annual output more than eightfold to half a million ounces as the company considers investing US$400 million in Zimbabwe over the next decade.

The southern African nation is battling to attract investors as it struggles with food and fuel shortages amid a crackdown on political opponents by President Emmerson Mnangagwa. “Obviously there is risk but we think some of those risks are mis-priced by the market,” Mason said. “Zimbabwe offers good return for acceptable risk.”

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