<SEC-DOCUMENT>0001137171-12-000269.txt : 20120629
<SEC-HEADER>0001137171-12-000269.hdr.sgml : 20120629
<ACCEPTANCE-DATETIME>20120628183423
ACCESSION NUMBER:		0001137171-12-000269
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20120628
FILED AS OF DATE:		20120629
DATE AS OF CHANGE:		20120628

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CALEDONIA MINING CORP
		CENTRAL INDEX KEY:			0000766011
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			A1
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-13345
		FILM NUMBER:		12933680

	BUSINESS ADDRESS:	
		STREET 1:		SUITE 1201 - 67 YONGE STREET
		CITY:			TORONTO
		STATE:			A6
		ZIP:			M5E 1J8
		BUSINESS PHONE:		4163699835

	MAIL ADDRESS:	
		STREET 1:		SUITE 1201 - 67 YONGE STREET
		CITY:			TORONTO
		STATE:			A6
		ZIP:			M5E 1J8

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GOLDEN NORTH RESOURCE CORP
		DATE OF NAME CHANGE:	19920302
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>caledonia6k06282012.htm
<DESCRIPTION>CALEDONIA MINING CORPORATION - 6-K
<TEXT>
<HTML>
<HEAD>
     <TITLE>FG Filed by Filing Services Canada Inc. - (403) 717-3898</TITLE>
</HEAD>
<BODY STYLE="font: 11pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>FORM
6-K</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Washington,
DC 20549</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Report
of Foreign Private Issuer</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Pursuant
to Rule 13a-16 or 15d-16</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Of
the Securities Exchange Act of 1934</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">For
the month of June 2012</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Commission
File Number: 000-13345</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>CALEDONIA
MINING CORPORATION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Translation
of registrant&rsquo;s name into English)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>1710
&ndash; 1177 West Hastings Street</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Vancouver,
British Columbia V6E 2L3</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Canada</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Address
of principal executive offices)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Indicate
by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Form
20-F___<U>x</U>___ Form 40-F _____</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Indicate
by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Yes
____ No&nbsp;&nbsp; <U>x&nbsp;&nbsp;</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If
&ldquo;Yes&rdquo; is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_______</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Signatures</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-size: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="line-height: 115%; font-size: 10pt; font-weight: bold">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">Caledonia
    Mining Corporation</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-size: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="line-height: 115%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Registrant)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27%; line-height: 115%; font-size: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="width: 47%; line-height: 115%; font-size: 10pt; text-decoration: underline"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">/s/&nbsp;
    Carl Jonsson</FONT></TD>
    <TD STYLE="width: 25%; line-height: 115%; font-size: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-size: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="line-height: 115%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">Name: &nbsp;Carl
    Jonsson</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-size: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="line-height: 115%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">Title: &nbsp;&nbsp;&nbsp;Director
    and Secretary</FONT></TD>
    <TD STYLE="line-height: 115%; font-size: 12pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Dated:
June 28, 2012</FONT></P>


<p STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-size: 10pt; font-family: 'Times New Roman', Times, Serif; text-align: justify; margin: 0">&nbsp;</p>
<p STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-size: 10pt; font-family: 'Times New Roman', Times, Serif; text-align: justify; margin: 0">&nbsp;</p>
<p STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-size: 10pt; font-family: 'Times New Roman', Times, Serif; text-align: justify; margin: 0">&nbsp;</p>
<p STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-size: 10pt; font-family: 'Times New Roman', Times, Serif; text-align: justify; margin: 0">&nbsp;</p>
<p STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-size: 10pt; font-family: 'Times New Roman', Times, Serif; text-align: justify; margin: 0">&nbsp;</p>
<p style="margin:0pt">&nbsp;</p>
<hr style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size="1.333">
<p style="margin:0pt; page-break-before:always" align="center">&nbsp;</p>
<p style="margin:0pt; page-break-before:always" align="center">&nbsp;</p>
<p style="margin:0pt; page-break-before:always" align="center"><b>Exhibit Index</b></p>
<p style="margin:0pt; page-break-before:always" align="center">&nbsp;</p>
<div align="left">
  <table border="0" width="100%">
    <tr>
      <td width="13%">
<p style="margin-top: 0pt; margin-bottom: 0pt">Exhibit</p>
      </td>
      <td width="87%">
<p style="text-indent: 0pt; margin: 0pt" align="left">Description</p>
      </td>
    </tr>
    <tr>
      <td width="13%"></td>
      <td width="87%"></td>
    </tr>
    <tr>
      <td width="13%">99.1</td>
      <td width="87%"><a href="mcr.htm">Material Change Report dated June 21,
        2012</a></td>
    </tr>
    <tr>
      <td width="13%"></td>
      <td width="87%"></td>
    </tr>
    <tr>
      <td width="13%"></td>
      <td width="87%"></td>
    </tr>
    <tr>
      <td width="13%"></td>
      <td width="87%"></td>
    </tr>
    <tr>
      <td width="13%"></td>
      <td width="87%"></td>
    </tr>
  </table>
</div>
<blockquote>
  <p style="margin: 0pt; padding-left: 216pt">&nbsp;</p>
</blockquote>
<p style="margin: 0pt; padding-left: 216pt">&nbsp;</p>
<hr>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>mcr.htm
<DESCRIPTION>MATERIAL CHANGE REPORT DATED JUNE 21, 2012
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>FG Filed by Filing Services Canada Inc. - (403) 717-3898</TITLE>
</HEAD>
<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt" align=center>NI FORM 51-102F3</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:12pt" align=center>MATERIAL CHANGE REPORT</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; font-size:12pt; float:left"><B>Item 1 </B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B>Name and Address of Company</B></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>Caledonia Mining Corporation (<font style='font-family:Arial Unicode MS,Times New Roman'>&#8220;</font>Company<font style='font-family:Arial Unicode MS,Times New Roman'>&#8221;</font>)</P>
<P style="margin:0px; font-size:12pt">Suite 1710, 1177 West Hastings Street</P>
<P style="margin:0px; font-size:12pt">Vancouver, BC &nbsp;V6E 2L3</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; font-size:12pt; float:left"><B>Item 2</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B>Date of Material Change</B></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>June 20, 2012</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; font-size:12pt; float:left"><B>Item 3</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B>News Release</B></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>The material change is described in a News Release issued by the Company dated June 21, 2012.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>The Company<font style='font-family:Arial Unicode MS,Times New Roman'>&#8217;</font>s News Releases are disseminated through normal news release disseminators in Canada, the United States and England.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; font-size:12pt; float:left"><B>Item 4 </B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B>Summary of Material Change</B></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>The Company<font style='font-family:Arial Unicode MS,Times New Roman'>&#8217;</font>s wholly owned Zimbabwe subsidiary, Blanket Mine (1983)(Private) Limited (<font style='font-family:Arial Unicode MS,Times New Roman'>&#8220;</font>Blanket<font style='font-family:Arial Unicode MS,Times New Roman'>&#8221;</font>) <font style='font-family:Arial Unicode MS,Times New Roman'>&#8211;</font> which operates the Blanket gold mine (<font style='font-family:Arial Unicode MS,Times New Roman'>&#8220;</font>Blanket Mine<font style='font-family:Arial Unicode MS,Times New Roman'>&#8221;</font>) in Zimbabwe - has signed the last of the Indigenisation Agreements necessary to satisfy the requirements of the Indigenisation Implementation Memorandum of Understanding (<font style='font-family:Arial Unicode MS,Times New Roman'>&#8220;</font>MOU<font style='font-family:Arial Unicode MS,Times New Roman'>&#8221;</font>) which the Company and Blanket earlier signed with the Government of Zimbabwe which provided for the indigenisation of Blanket and the Blanket Mine.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; font-size:12pt; float:left"><B>Item 5</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B>&nbsp;Full Description of Material Change</B></P>
<P style="margin-top:16px; margin-bottom:0px; font-size:12pt; clear:left" align=justify>The Government of Zimbabwe earlier passed its Indigenisation and Economic Empowerment Act (the <font style='font-family:Arial Unicode MS,Times New Roman'>&#8220;</font>Indigenisation Act<font style='font-family:Arial Unicode MS,Times New Roman'>&#8221;</font>) which requires all companies which have a value above a specific amount <font style='font-family:Arial Unicode MS,Times New Roman'>&#8211;</font> which includes Blanket <font style='font-family:Arial Unicode MS,Times New Roman'>&#8211;</font> to effect the transfer of 51% of the company, or its business, to indigenous Zimbabweans. &nbsp;Effectively, this required the transfer to indigenous Zimbabweans of a 51% interest in the Blanket Mine. &nbsp;In compliance with the Indigenisation Act the Company and Blanket earlier submitted a proposed indigenisation plan to the Ministry of Youth, Development, Indigenisation and Empowerment of the Government of Zimbabwe (the <font style='font-family:Arial Unicode MS,Times New Roman'>&#8220;</font>Ministry<font style='font-family:Arial Unicode MS,Times New Roman'>&#8221;</font>) - the ministry responsible for ensuring the achievement of indigenisation. &nbsp;&nbsp;After lengthy negotiations the Company and Blanket signed &nbsp;the MOU, dated February 20, 2012, with the Ministry. &nbsp;The principal provisions of the MOU were that shares would be issued out of the capital of Blanket so that, after the completion of the issuance, 51% of the issued shares of Blanket would be owned by indigenous Zimbabweans <font style='font-family:Arial Unicode MS,Times New Roman'>&#8211;</font> on the following basis:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:Symbol; font-size:12pt; float:left">&nbsp;</P>
<ul>
  <li>
    <p style="text-indent: -2px; font-size: 12pt; line-height: 100%; margin: 0px; padding-left: 48px" align="justify">10% to be gifted to a Community Trust (<font style='font-family:Arial Unicode MS,Times New Roman'>&#8220;</font>Trust<font style='font-family:Arial Unicode MS,Times New Roman'>&#8221;</font>) which has been established for the benefit of the residents of an area which includes the Blanket Mine site and the nearby town of Gwanda. &nbsp;In addition, Blanket will pay $1,000,000 to the Trust as a non-refundable gift</li>
</ul>
<ul>
  <li>
    <p style="text-indent: -2px; font-size: 12pt; line-height: 100%; margin: 0px; padding-left: 48px" align="justify">10% to be sold for $7,339,024 to an Employee Trust that has been established for the benefit of the present and future employees of the Blanket Mine</li>
</ul>
<P style="margin:0px; padding-left:48px; text-indent:-24px; font-size:12pt" align=justify>&nbsp;</P>
<HR style="margin-bottom:9.6px; padding-top:9.6px" noshade size=1.333>
<P style="margin:0px; font-size:12pt; page-break-before:always" align="center">2</P>
<P style="margin:0px; padding-left:48px; text-indent:-24px; font-size:12pt" align=justify>&nbsp;</P>
<P style="text-indent: 24px; width: 48px; font-family: Symbol; font-size: 12pt; float: left; line-height: 100%; margin-top: 0px; margin-bottom: -2px">&nbsp;</P>
<ul>
  <li>
    <p style="text-indent: -2px; font-size: 12pt; line-height: 100%; margin: 0px; padding-left: 48px" align="justify">16% to be sold for $11,742,439 to the National Indigenisation and Economic Empowerment Fund <font style='font-family:Arial Unicode MS,Times New Roman'>&#8211;</font> which has been established by Zimbabwe</li>
</ul>
<ul>
  <li>
    <p style="text-indent: -2px; font-size: 12pt; line-height: 100%; margin: 0px; padding-left: 48px" align="justify">15% to be sold for $11,008,536 to a consortium of indigenous Zimbabweans
    (<font style='font-family:Arial Unicode MS,Times New Roman'>&#8220;</font>Agreements<font style='font-family:Arial Unicode MS,Times New Roman'>&#8221;</font>)</li>
</ul>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>The MOU provided for the valuation of the 51% &nbsp;- for the purposes of the MOU - to be $30,090,000 <font style='font-family:Arial Unicode MS,Times New Roman'>&#8211;</font> which is the total of the amounts payable pursuant to the Agreements. &nbsp;The Company and Blanket have agreed to fund the purchases, if the purchasers require funding assistance, with the funding to be repaid with interest at a rate of 10% over the 12 month LIBOR rate by the withholding of 80% of the dividends that are declared and paid from time to time in the future on the shares by Blanket.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>All references to monies herein are to United States dollars.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>Completion of the Agreements is subject to several conditions precedent, which include certain approvals from the Reserve Bank of Zimbabwe which are expected to be met in the near future.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>As a result of Blanket signing the last of the Agreements the Zimbabwe National Indigenisation and Economic Empowerment Board has issued to Blanket a Certificate of Compliance confirming that Blanket has fully complied with Section 3(1)(a) of the Indigenisation Act.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; font-size:12pt; float:left"><B>Item 6</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B>&nbsp;Reliance on subsection 7.1(2) of National Instrument 51-102.</B></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>Nil</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; font-size:12pt; float:left"><B>Item 7</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B>&nbsp;Omitted Information</B></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>Nil</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; font-size:12pt; float:left"><B>Item 8</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B>&nbsp;Executive Officer</B></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>The name and business telephone number of the executive officer of the Company who is knowledgeable about the material change and this Report:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>Carl R. Jonsson</P>
<P style="margin:0px; font-size:12pt" align=justify>Chairman of the Board, Director and Secretary</P>
<P style="margin:0px; font-size:12pt" align=justify>Tel: &nbsp;(604) 640-6357</P>
<P style="margin:0px; font-size:12pt" align=justify>email: &nbsp;<FONT style="color:#0000FF"><U>jonsson@securitieslaw.bc.ca</U></FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; width:48px; font-size:12pt; float:left"><B>Item 9</B></P>
<P style="margin:0px; text-indent:-2px; font-size:12pt" align=justify><B>&nbsp;Date of Report</B></P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin:0px; font-size:12pt" align=justify>June 27, 2012</P>
<P style="margin:0px" align=justify><BR></P>
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