Caledonia Secures $150 Million Financing Facility for Zimbabwe’s Bilboes Gold Project

Caledonia Mining Corporation has secured a US$150 million interim financing facility to advance development of its Bilboes Gold Project in Zimbabwe, which is expected to become the country’s largest gold mine once fully operational.

The Jersey-based mining company announced that a consortium of eight Zimbabwean banks is leading the financing, providing additional funding as Caledonia works towards completing the project’s overall financing strategy.

The facility comprises a US$50 million revolving credit line and a US$100 million term loan. Both are linked to the Secured Overnight Financing Rate (SOFR), with the revolving facility priced at SOFR plus 8.10% and the term loan at SOFR plus 7.90%.

The three-year financing arrangement includes an option for a 12-month extension. The term loan also provides an option to increase the amount by a further US$50 million.

Bilboes project requires US$584 million investment

The Bilboes Gold Project has an estimated development cost of US$584 million, with peak funding requirements projected at US$484 million.

Caledonia is using several financing measures to fund the development. In addition to the latest bank facility, the company has raised US$150 million through a convertible notes offering, generating approximately US$130 million after costs.

It has also implemented a gold-price hedging programme to protect the project against fluctuations in market prices.

The interim financing facility is one of four funding measures forming part of the company’s broader strategy to secure the capital required for Bilboes.

Caledonia Chief Executive Officer Mark Learmonth said the support from Zimbabwean banks and international capital markets investors reflected confidence in the project’s quality, the company’s development strategy and the outlook for Zimbabwe’s gold sector.

He added that accessing multiple sources of funding provided a stronger foundation for completing the remaining project finance arrangements.

Zimbabwe’s largest planned gold mine

Bilboes is expected to become Zimbabwe’s largest gold asset when it reaches full production, strengthening the country’s position in Africa’s gold mining industry.

The project is particularly significant as Zimbabwe’s gold sector has experienced substantial production growth in recent years.

The country produced a record 46.7 tonnes of gold in 2025, up from 36.5 tonnes in 2024, according to the figures cited in the report. This marked a major recovery from the approximately three tonnes recorded in 2008.

Caledonia’s development plans are expected to add further capacity to the country’s mining industry and support its efforts to increase mineral production and export earnings.

Production targeted for October 2028

Caledonia has indicated that development work is progressing, with full production at Bilboes expected to begin in October 2028.

The company said it planned to spend approximately US$132 million in 2026 to initiate development activities at the project.

Caledonia already operates the Blanket Gold Mine in Zimbabwe, which has an annual production capacity of approximately 80,000 ounces. The Bilboes development would significantly expand its operational footprint in the country.

The new financing facility represents an important step towards funding construction, although the company still needs to complete the remaining components of its project financing strategy.

If delivered as planned, Bilboes could become a major contributor to Zimbabwe’s gold production, while expanding Caledonia’s position in one of Africa’s established gold-producing jurisdictions.