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Message: [QUOTE="Queen, post: 84834, member: 27"] North American investors just poured US$150 million into Caledonia Mining Corporation to jumpstart the Bilboes gold project through a massive bond sale. American investors go wild for Zimbabwean gold [LIST] [*]Demand for these bonds actually hit US$600 million because institutional investors in the United States really wanted in. [*]Mark Learmonth originally hunted for US$100 million, but the company had to bump that number up twice to keep everyone happy. [*]Underwriters eventually pushed the total to US$150 million after they used up every single option to buy extra notes. [/LIST] Gold miner secures cash for major procurement [LIST] [*]Financial experts at Cantor Fitzgerald led the deal, which uses convertible notes that pay out a 5.875% interest rate. [*]Cash is staying in the pocket because Caledonia used capped call transactions to make sure current shareholders do not get diluted. [*]Net proceeds should land right around US$130 million once all the fees and hedging costs get cleared away from the pile. [/LIST] Funding strategy targets four stages for growth [LIST] [*]Bilboes needs a ton of cash, so this bond issue is just the first step in a much bigger four-part plan. [*]Protection against a market crash is already in place thanks to gold price hedging that locks in US$3,500 per ounce. [*]Regional banks in Zimbabwe and South Africa are currently talking to the firm about an extra US$150 million loan. [*]Formal project financing should kick off this quarter as lenders start their deep dives into the feasibility studies for the mine. [/LIST] [/QUOTE]

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