CALEDONIA AMENDS TERMS OF SHARE PURCHASE WARRANTS
Toronto, Ontario - September 14, 2005: Caledonia Mining Corporation (“Caledonia”) (TSX: CAL, NASDAQ: CALVF, AIM: CMCL) has amended the terms of 27,232,909 outstanding share purchase warrants - which have had exercise dates of September 29, 2005 as to a portion, and October 26, 2005 as to the balance - all exercisable at $0.55 per share. All of the warrants will now be exercisable at $0.11 per share on or before October 31, 2005.
The warrants were granted in a 2004 private placement by Caledonia. As they are now seriously out of the money it is considered appropriate the exercise prices be reduced to $0.11 per share. The closing market price of Caledonia’s shares on the Toronto Stock Exchange on September 12, 2005 was $0.11 per share. Caledonia is optimistic that, based on the new terms, a significant number of the warrants will be exercised thereby providing it additional working capital.
For further information please contact Caledonia Mining Corporation:
Stefan Hayden Caledonia Mining | James Johnstone Caledonia Mining | Alex Buck / Nick Bias Buck-Bias |
Further information regarding Caledonia's exploration activities and operations along with its
latest financials may be found on the Corporation's websitehttp://www.caledoniamining.com