Caledonia Mining Sells Solar Subsidiary to CrossBoundary Energy for US$22.35 Million

Zimbabwe-based gold mining powerhouse Caledonia Mining Corporation Plc, listed on the New York Stock Exchange, Victoria Falls Stock Exchange, and London Stock Exchange, has successfully concluded the sale of its subsidiary, Caledonia Mining Services (Private) Limited (CMS), to CrossBoundary Energy Holdings (CBE). The transaction, which closed on April 11, 2025, was valued at a pre-tax cash consideration of US$22.35 million.

The deal involves the 12.2MWac solar power plant owned and operated by CMS, which has been supplying renewable energy to Caledonia’s flagship Blanket Mine. The sale marks a strategic shift for the mining company as it sharpens focus on its core gold mining operations and expansion projects.

Initiated in September 2024, the sale process was overseen by IH Advisory, Caledonia’s Zimbabwean financial advisors. The competitive bidding process culminated in the agreement with CrossBoundary Energy, a firm renowned for delivering tailored energy solutions to Africa’s industrial sector.

Despite the change in ownership, Caledonia has secured an exclusive power purchase agreement that ensures Blanket Mine continues receiving electricity from the solar plant. This agreement guarantees the continued supply of clean, renewable energy covering approximately 20% of the mine’s daily power requirements.

Originally constructed with funds raised through a US$13 million share offering in the United States in 2020, the solar plant began operations in February 2023. Since then, it has generated over 57,722 megawatt-hours of electricity, substantially contributing to the mine’s energy needs while reducing dependence on the national grid.

The transaction also represents a financial gain for Caledonia, which invested US$14.3 million in building the solar facility. By selling it for US$22.35 million, the company secures a solid return on investment while enhancing its liquidity position. As of April 9, 2025, Caledonia’s consolidated net debt stood at US$3.8 million. Following the receipt of funds from the sale on April 10, the company now holds a pro forma consolidated net cash balance of US$18.6 million.

Caledonia CEO Mark Learmonth expressed satisfaction with the outcome, noting that the sale strengthens the company’s balance sheet and supports its strategic priorities.

“We are pleased to have completed the sale of the solar plant, strengthening our cash position and enabling us to redeploy capital towards our core gold mining and expansion operations,” said Learmonth. “Importantly, we retain the exclusive energy off-take agreement, ensuring that approximately 20% of Blanket Mine’s daily electricity needs continue to be met by renewable energy.”

CrossBoundary Energy’s Managing Partner, Matthew Tilleard, emphasized that the acquisition aligns with their mission to provide sustainable energy to African industries, particularly mining.

“Energy provision is an expensive challenge for the mining sector in Africa,” Tilleard stated. “Through a power purchase agreement, Blanket Mine will continue utilising the benefits of distributed renewable power, whilst freeing up capital for its value-generating mining activities.”

The successful transaction marks another milestone in Caledonia Mining’s evolution, underscoring its commitment to responsible growth, financial prudence, and sustainable energy integration.