Caledonia Mining Corporation Plc: Sale of Zimbabwe Government Treasury Bills by Blanket Mine

TORONTO, ONTARIO–(Marketwired – May 16, 2016) – Caledonia Mining Corporation Plc (“Caledonia” or the “Company”) (TSX:CAL)(OTCQX:CALVF)(AIM:CMCL) announces that its 49% owned Zimbabwean subsidiary, Blanket Mine, has sold Treasury Bills (“Bills”) issued by the Government of Zimbabwe for a gross value of approximately $3.2 million. The Bills were issued to Blanket in 2015 and replaced the Special Tradeable Gold Bonds (“Bonds”) which were issued to Blanket in 2009. The Bonds were issued as part consideration for gold sales that were made by Blanket in 2008 under the terms of the sales mechanism that existed at that time for Zimbabwean gold producers. The Bonds were fully written down in a previous accounting period, and the impairment value was applied as a deduction from Blanket’s income tax liability. Accordingly, the gross sales proceeds will be subject to Zimbabwean income tax at 25.75%.

Source: http://www.marketwired.com/mw/release.do?id=2124993&sourceType=3