Caledonia Mining Corporation Plc has signed an interim financing facilities agreement of up to US$150 million to support the construction of the Bilboes Gold Project in Zimbabwe. The facility, arranged by Stanbic Bank Zimbabwe Limited and CBZ Bank Limited, provides additional financial flexibility as the company executes its financing strategy for the project.
The facility comprises two tranches: a revolving credit facility of up to US$50 million and a term facility of up to US$100 million, with an accordion option of up to a further US$50 million. The facility has a termination date of 36 months from its effective date, with the option of a one-year extension.
This financing facility is the third pillar of Caledonia’s four-pillar funding strategy for Bilboes, following the completion of a gold price hedging programme and a US$150 million convertible notes offering. The company is advancing discussions with regional and international financial institutions regarding a longer-term project financing package.
Mark Learmonth, Chief Executive Officer, commented:
“The support received from banking institutions and international capital markets investors reflects confidence in the quality of Bilboes, our development approach, and the broader outlook for Zimbabwe’s gold mining sector. Bilboes is expected to transform Caledonia’s production profile, and we remain focused on advancing the project towards development, with first gold expected in October 2028.”
Caledonia’s US$150 million financing facility for the Bilboes Gold Project is a significant step towards achieving Zimbabwe’s National Development Strategy 2 (NDS2) goals and Vision 2030. The project aligns with the government’s priorities of increasing mineral production, creating jobs, and stimulating economic growth.
By investing in Bilboes, Caledonia is contributing to Zimbabwe’s vision of becoming a middle-income economy by 2030, driven by a thriving mining sector. The facility’s focus on sustainable development and responsible mining practices also supports the country’s efforts to promote environmentally friendly and socially responsible mining operations.
