Caledonia Mining signs a Memorandum of Understanding with a South African Black Economic Empowerment Consortium.TORONTO -- Caledonia Mining Corporation ("Caledonia") (TSX:CAL)(NASDAQ-OTCBB:CALVF)(AIM:CMCL CMCL Cedar Mill Community Library (Portland, OR) ) is pleased to announce the signing of a Memorandum of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. with a Black Economic Empowerment Black Economic Empowerment (BEE) is a program launched by the South African government to redress the inequalities of Apartheid by giving previously disadvantaged groups (black Africans, Coloureds and Indians) economic opportunities previously not available to them. Consortium ("Consortium") with respect to its South African assets. Full details of the Consortium will be disclosed once the deal has been finalized. Under South African legislation introduced in May 2004, and in order to receive New Order Prospecting Rights and Mining Licences, Caledonia must comply with the Minerals and Petroleum Resources Development Act 2002. The Act refers in particular to a requirement for an effective Black Economic participation of at least 26% equity in mining companies within ten years. In terms of the transaction being negotiated, the Consortium will at a negotiated fair market value, purchase an equity interest of at least 15% in Caledonia's South African assets with the option to acquire up to 30% of these assets thereafter. Stefan Hayden, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Caledonia, said: "Caledonia has taken an important first step towards ensuring our South African assets comply with local legislation required to receive the New Order Prospecting Rights and Mining Licenses. We have carefully selected this Consortium for its proven leadership and the broad representation of its members which includes woman's groups and the local communities in areas where Caledonia operates. We believe our new partners will be active stakeholders, contributing to the growth and expansion of the South African business Business in South Africa is vibrant and alive. Business varies from informal traders selling anything from potatoes to plastic ware. Business may be incorporated in various forms including
Further information regarding Caledonia's exploration activities and operations along with its latest financials may be found at www.caledoniamining.com. Caledonia Mining Corporation (TSX:CAL) (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :CALVF) (AIM:CMCL) |
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