Caledonia Completes Solar Plant Sale to CrossBoundary Energy
Deal News | May 02, 2025 | arch emerging markets partners
Caledonia Mining Corporation Plc has successfully sold its Zimbabwean subsidiary, Caledonia Mining Services, to CrossBoundary Energy Holdings for $22.35 million. The subsidiary owns a 12.2MW solar plant that provides power to Caledonia's Blanket Mine. Post-sale, the plant will continue to supply energy to the mine under a power purchase agreement. This divestment aligns with Caledonia's strategy to focus capital on core gold mining operations. Initiated by a share offering that raised $13 million, the solar plant has generated significant power since its 2023 commissioning. The sale allows Caledonia to realize a profit over the plant's $14.3 million construction cost and bolsters its cash by reducing net debt from $8.7 million to a pro forma cash balance of $18.6 million.
Sectors
- Mining
- Renewable Energy
- Private Equity & Investment
Geography
- Zimbabwe – The location of the solar plant and Blanket Mine, the primary focus of the transaction.
- USA – Initial financing for the solar plant involved a share offering in the USA.
Industry
- Mining – Caledonia Mining Corporation Plc is involved in gold mining operations.
- Renewable Energy – The article discusses the sale of a solar plant, which is part of the renewable energy sector.
- Private Equity & Investment – CrossBoundary Energy Holdings, a private investment firm, is acquiring the solar plant.
Financials
- $22.35 million – Pre-tax consideration for the sale of the solar plant.
- $13 million – Raised for the solar plant's construction via a share offering.
- $14.3 million – Construction cost of the solar plant.
- $3.8 million – Caledonia's net debt prior to receiving the sale's cash consideration.
- $18.6 million – Pro forma consolidated net cash balance after the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Caledonia Mining Corporation Plc | Vendor | Company | A gold mining company selling its solar subsidiary. |
| Caledonia Mining Services (Private) Limited | Target Company | Company | Subsidiary owning the solar plant being sold. |
| CrossBoundary Energy Holdings | Buyer | Company | Purchaser of the solar plant from Caledonia. |
| IH Advisory | Financial Advisor | Company | Managed the bidding process for the sale of the solar plant. |