Caledonia Mining said its Zimbabwean subsidiary, Caledonia Holdings Zimbabwe (Private) Limited, has signed an interim financing agreement of up to $150 million to support construction of the Bilboes gold project in Matabeleland North. The facility is syndicated across eight Zimbabwean banks, with Stanbic Bank Zimbabwe and CBZ Bank, acting through CBZ Capital, as mandated lead arrangers, alongside CABS, FBC Bank, FBC Crown Bank, First Capital Bank, NMB Bank and ZB Bank.
The facility has two tranches: a revolving credit facility of up to $50 million at SOFR plus 8.10 percent a year, and a term facility of up to $100 million at SOFR plus 7.90 percent, with an accordion option for a further $50 million. The term runs 36 months from its effective date with an option to extend by a year, and the term tranche carries an 18 month availability period with a pause on capital repayments before quarterly repayments begin. Initial use of the revolving tranche is subject to conditions, including additional hedging arrangements.
Bilboes is Caledonia’s principal growth project and, on the company’s numbers, Zimbabwe’s biggest gold development. The feasibility study published in November 2025 outlines production of about 1.55 million ounces over a 10.8 year mine life, with first production targeted for late 2028 and output ramping toward 200,000 ounces a year from 2029. The project carries a capital cost of about $584 million and a peak funding requirement of about $484 million, so the bridge facility covers only part of the build.
The facility is the third of four pillars in Caledonia’s funding plan. The company completed a $150 million convertible senior notes offering in January 2026, generating about $130 million in net proceeds, and runs a gold price hedging programme covering 3,000 ounces a month from January 2026 to December 2028 at a minimum price of $3,500 an ounce, underpinning cash flow from its operating Blanket Mine. The fourth pillar, long term project finance with regional and international lenders, is still to be secured, and the cost of the bridge, at spreads near 8 percent over SOFR, underlines why Caledonia wants to replace it.