Caledonia Chief Executive Officer Mark Learmonth said progress on the Bilboes funding strategy reflects growing confidence in the project and in Zimbabwe’s gold mining sector.
“Earlier this year, we set out a clear four-pillar funding strategy for Bilboes. With the successful completion of our hedging programme, convertible notes offering and now the US$150 million interim financing facility, we will have successfully delivered three of those four pillars and substantially advanced the funding framework for the project,” Learmonth said.
“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,” he said.
“Bilboes is expected to transform Caledonia’s production profile and we remain focused on advancing the project towards development. We are encouraged by the progress made to date and remain on track to achieve first gold in October 2028,” Learmonth said.
Learmonth was speaking after Caledonia Mining Corporation Plc signed an interim financing facility of up to US$150 million to support construction of its Bilboes Gold Project in Zimbabwe, in a major boost for one of the country’s largest gold developments.
The facility was signed by Caledonia Holdings Zimbabwe (Private) Limited, a subsidiary of Caledonia, and will provide additional financial flexibility as the group executes its financing strategy for Bilboes.
The facility has a termination date of 36 months from its effective date, with an option for a one-year extension.
It was arranged by Stanbic Bank Zimbabwe Limited, a member of the Standard Bank Group, and CBZ Bank Limited, acting through CBZ Capital, as mandated lead arrangers. It was syndicated across a consortium of eight leading Zimbabwean financial institutions, comprising Stanbic Bank, CBZ Bank, Central African Building Society, FBC Bank, FBC Crown Bank, First Capital Bank, NMB Bank and ZB Bank.
The facility comprises two tranches. Facility A is a revolving credit facility of up to US$50 million at an interest rate of the secured overnight financing rate (SOFR) plus 8.10 percent per annum. Facility B is a term facility of up to US$100 million, with an accordion option of up to a further US$50 million, at SOFR plus 7.90 percent per annum. Facility B has an 18-month availability period and capital repayment pause, after which amounts drawn will be repaid through quarterly repayments.
Caledonia said the facility provides an additional source of funding while maintaining momentum on the development of Bilboes and advancing discussions with prospective providers of long-term project finance.
The successful syndication across eight banks demonstrates strong support from the Zimbabwean banking sector for both the group and the project, the company said.
The facility complements the company’s recently completed convertible notes offering and gold price hedging programme, creating a diversified and robust financing platform as the group advances towards securing the final component of its funding strategy.
Bilboes is expected to be a transformational growth project for Caledonia and is a key component of the group’s strategy to become a larger, multi-asset Zimbabwe-focused gold producer.
Earlier in 2026, Caledonia announced a four-pillar funding strategy designed to support the development of Bilboes while balancing financial flexibility and prudent risk management. The facility forms the third pillar of the funding strategy.
The first pillar, a gold price hedging programme, was completed in December 2025 through put options covering 3,000 ounces per month through December 2028, establishing a floor price of US$3,500 per ounce while retaining full participation in upside gold price movements.
The second pillar, a convertible notes offering, was completed in January 2026, when Caledonia successfully completed an upsized US$150 million offering, generating approximately US$130 million in net proceeds.
Caledonia said it continues to advance discussions with regional and international financial institutions regarding a longer-term project financing package. Due diligence and lender engagement processes are ongoing and are running in parallel with the interim financing arrangements.
With the completion of the hedging programme, convertible notes offering and the facility, Caledonia said it has successfully delivered three of the four pillars of its Bilboes funding strategy.
Initial ground works at Bilboes are now underway, with main construction to take place during 2027 and 2028. The project remains on track to deliver first gold in October 2028.
