WH Ireland Analyst Paul Smith said of Caledonia Mining (LON:CMCL) “Caledonia announced yesterday that it intends (subject to shareholder approval) to re-domicile from Canada to Jersey. At the same time it will change its name to Caledonia Mining Corporation Plc. Shares will continue to trade in Toronto and the OTCQX as well as the London market.
There are many good corporate reasons why this move should take place: Caledonia has no Canadian operations, Jersey is in a similar time zone to Caledonia’s operation at Blanket in Zimbabwe and more importantly for the London market the move will eliminate Canadian withholding tax on dividends paid by non-Canadian shareholders.
With the significant capital investment into Zimbabwe and the increased revenues and profits that will bring to the company Caledonia also continues to simplify and streamline its corporate function. “