Caledonia and Mitsubishi sign agreement

Caledonia Mining Corporation has signed an agreement, which is subject to certain conditions being satisfied within three months from the signature date, with Mitsubishi Corporation on the Rooipoort & Mapochsgronde platinum exploration projects in South Africa.

The Rooipoort platinum and nickel project is located some 10 kilometres south of Mokopane at the southern end of the Northern Limb of the Bushveld Complex, in the Limpopo Province of South Africa. While the Mapochsgronde platinum project is located in the Mpumalanga Province of South Africa.

Under the deal, Mitsubishi has a right to purchase up to 50% interest in each of the Rooipoort and Mapochs projects by spending up to C$40 million over a six year period on exploration (provided that the exploration results so warrant), or upon the completion of a Bankable Feasibility Study on a project, whichever occurs first.

However, Caledonia will remain the exploration operator in the project.

Stefan Hayden, President and CEO of Caledonia, said, I am delighted to be partnering with MC on the Rooipoort and Mapochs platinum projects.

The injection of up to C$40 million into these exciting exploration projects will enable us to aggressively explore and assess the full potential of these projects through to Bankable Feasibility Study stage.

Subject to the completion of a number of mutually agreed conditions, we will immediately commence drilling, with the aim of upgrading and expanding the Rooipoort NI 43-101 resource.