Caledonia Mining Corporation Plc has signed an interim financing facilities agreement of up to US$150 million with a consortium of eight local banking institutions to support the development of its flagship Bilboes Gold Project in Matabeleland North.
The financing package, one of the largest syndicated mining loans arranged by Zimbabwean banks in recent years, is expected to provide critical funding for the project’s development phase before full-scale construction begins in 2027. First gold production is targeted for October 2028, with annual output projected to exceed 200,000 ounces from 2029.
The 36-month facility, which includes an option for a one-year extension, comprises a revolving credit facility of up to US$50 million and a term loan facility of up to US$100 million. The term loan also includes an additional US$50 million accordion feature to accommodate future funding requirements.
Stanbic Bank Zimbabwe and CBZ Bank, through CBZ Capital, acted as mandated lead arrangers for the transaction. Other participants in the syndicate include CABS, FBC Bank, FBC Crown Bank, First Capital Bank, NMB Bank and ZB Bank.
The agreement secures the third of four funding pillars outlined in Caledonia’s financing strategy for Bilboes. The company has already completed an extensive gold hedging programme, securing a floor price of US$3,500 per ounce for 3,000 ounces per month through December 2028, and earlier raised a net US$130 million through a convertible senior notes offering.
Caledonia Chief Executive Officer Mark Learmonth said progress towards securing the final funding component, a long-term project finance facility from regional and international lenders, was advancing faster than anticipated.
He said the support received from both local financial institutions and international capital market investors reflected growing confidence in the quality of the Bilboes project, the company’s development strategy and the prospects of Zimbabwe’s gold mining industry.
Caledonia acquired the Bilboes asset in January 2023 and subsequently completed a definitive feasibility study that projects a 10.8-year mine life and total gold production of approximately 1.55 million ounces using BIOX® processing technology.
Once fully operational, Bilboes is expected to become Zimbabwe’s largest single gold-producing mine, underscoring the significance of the financing transaction for both the project and the country’s mining sector.
The successful syndication also highlights increasing confidence among domestic lenders in large-scale mining investments despite elevated global interest rates and ongoing currency market challenges. Analysts view the willingness of eight local banks to support a nine-figure US dollar facility as a strong endorsement of both the project’s economics and Zimbabwe’s long-term gold production potential.
Caledonia, which is listed on the New York Stock Exchange (NYSE American), the London Stock Exchange’s AIM market and the Victoria Falls Stock Exchange, currently operates the Blanket Gold Mine near Gwanda, its principal producing asset. 
