Caledonia Mining has moved closer to unlocking funding for its next big expansion in Zimbabwe, picking Stanbic Bank Zimbabwe and CBZ Bank to arrange a US$150 million loan facility to push ahead with development of the Bilboes gold project.
In November last year, Caledonia approached a consortium of Zimbabwean and South African banks to line up short-term funding. After reviewing proposals from interested lenders, Caledonia has selected Stanbic Bank Zimbabwe and CBZ to lead the process. The company expects the money to be in place by mid-2026.
Caledonia bought Bilboes in 2023 for US$65 million in shares, part of a strategy to expand its portfolio beyond Blanket Mine. The company has now started raising part of the US$484 million needed for a project that it says will help restore Zimbabwe’s reputation as “a major gold mining destination”. In January, Caledonia raised US$150 million in a bond issue that drew stronger-than-expected bidding from US institutional investors.
Rather than relying on a single source of cash, the company is stitching together several funding streams, including bank debt, hedging, convertible notes and cash generated from Blanket Mine. That mix reduces pressure on any one source and gives management more room to manage costs, timelines and market swings.
CEO Mark Learmonth says the appointment of the two banks marks progress on the company’s plans. “We believe this facility, together with our hedging programme, the proceeds from the Convertible Notes Offering and internal cash generation from Blanket Mine will provide additional financial flexibility as we continue to advance our growth plans,” says Learmonth.
The facility is a bridge of short- to medium-term money that allows Caledonia to keep moving on Bilboes gold project while it finalises longer-term financing.
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