Caledonia taps Stanbic, CBZ to arrange US$150M funding for Bilboes gold project
STAFF WRITER
Caledonia Mining has moved a step closer to securing funding for its next major Zimbabwean expansion, appointing Stanbic Bank Zimbabwe and CBZ Bank to arrange a US$150 million loan facility for the development of the Bilboes gold project.
The selection follows a competitive bid process after Caledonia approached a consortium of Zimbabwean and South African banks in November last year to line up short-term financing. The company expects the facility to be in place by mid-2026.
Caledonia acquired Bilboes in 2023 for US$65 million in shares as part of a strategy to diversify its portfolio beyond Blanket Mine. The company has begun raising portions of the US$484 million required for the project, which it says will help restore Zimbabwe’s standing as “a major gold mining destination.”
In January, Caledonia raised US$150 million through a bond issue that attracted stronger-than-expected demand from US institutional investors, receiving bids six times higher than the initial US$100 million sought.
The company is assembling multiple funding streams—including bank debt, hedging, convertible notes, and internal cash generation from Blanket Mine—rather than relying on a single source. This diversified approach reduces pressure on any one funding channel and provides management greater flexibility to navigate costs, timelines, and market volatility.
“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,” said CEO Mark Learmonth.
The facility represents bridge financing that will allow Caledonia to maintain momentum on Bilboes while finalising longer-term funding arrangements.
