Gold miner Caledonia mulls HQ move to Jersey

HARARE - Zimbabwe-focused mining concern Caledonia is proposing to move its headquarters from Canada to Jersey, Channel Islands, as part of strategies to reduce tax obligations.

Jersey, the largest of the Channel Islands, between England and France, is an independent, English-speaking territory with a mix of British and French cultures and is known for its relaxed tax laws.

Caledonia noted that it had no commercial operations in Canada, hence there is no reason for it to be domiciled in Canada and subject to Canadian taxes and the compliance costs associated with being a Canadian tax entity.

The latest move by Caledonia is also expected to help the company move closer to its operations in southern Africa and the majority of its shareholder base which range from continental Europe to South Africa and North America.

Caledonia chief executive Steve Curtis said the proposal to re-domicile Caledonia from Canada to Jersey was a further step in simplifying the company’s corporate structure, reducing compliance costs and increasing tax efficiency.

“The re-location to Jersey, if approved by shareholders, will result in Caledonia’s head office being located in Jersey, Channel Islands, which is more centrally located within the area of Caledonia’s operations in Zimbabwe and its shareholder base in Europe, the UK, South Africa and North America,” he said.

“The proposed re-domicile will have no effect on the continued trading of Caledonia shares in Toronto, London and on the OTCQX,” Curtis added.

Caledonia, which owns 49 percent in Blanket Mine, said the proposed continuance will have no effect on its dividend policy which is to pay 1,5 Canadian cents per quarter.

The miner’s board expects to maintain the current value of the Canadian dollar-denominated dividend payment in US dollar terms — thus at the current exchange rate, the quarterly dividend of 1,5 Canadian cents would be approximately 1,09 United State cents per share.

A further announcement relating to the next dividend payment can be expected in early January 2016.

Meanwhile, Caledonia has seen another sizeable chunk of the ore-body at Blanket Mine in Zimbabwe shifted into the higher confidence indicated resource category.

In total, a further 476 750 tonnes was upgraded of which 222 000 tonnes came from drilling in the AR South Section with the rest from the Blanket Quartz Reef, number one and two ore bodies.

Blanket already has 3,47 million tonnes of Reserves and Indicated Resources following a May 2015 upgrade.

This latest upgrade represented an increase of 14 percent in terms of tonnes, 19 percent in terms of contained gold and equates to two years of production at 2014 production levels.

 

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