Caledonia Mining Corporation has outlined a comprehensive funding strategy to advance the Bilboes gold project in Zimbabwe. The company has successfully closed a $150 million, 7-year convertible senior notes offering, which saw overwhelming demand from institutional investors in the United States, exceeding $600 million.
The funding strategy comprises four key components.
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Book NowUnder the Gold Price Hedging Programme, Caledonia has purchased put options to lock in a minimum gold price of $3,500 per ounce over 3,000 ounces per month from January 2026 to December 2028.
The company has initiated a Convertible Notes Offering where it has raised $150 million from the offering, with a 5.875% coupon and conversion on or after October 15, 2032.
It has also consummated a $150 million facility with Zimbabwean and South African commercial banks The facility is expected to be in place by mid-2026.
The first quarter of 2026 will see Caledonia commence a formal process to explore project finance options available.
This structured approach aims to maintain adequate liquidity throughout the initial phase of the Bilboes gold project, with production expected to begin in late 2028, ramping up to 200,000 ounces in 2029.
