Caledonia Mining Corporation Plc has appointed Stanbic Bank Zimbabwe and CBZ Bank as co-lead arrangers for an interim funding facility of up to US$150 million to support development of the Bilboes gold project, Mining Zimbabwe can report.
By Ryan Chigoche
The appointment follows a funding process launched in November 2025 to secure backing from a consortium of Zimbabwean and South African commercial banks.
After evaluating submissions and funding alternatives, Caledonia selected Stanbic and CBZ to structure and arrange the facility. The interim funding package is expected to be in place by mid-2026, subject to customary lender approvals.
The facility forms part of a broader capital strategy designed to underpin Caledonia’s next phase of growth.
It complements proceeds from a recent US$150 million convertible notes offering, a gold price hedging programme, and strong internal cash generation from Blanket Mine, which continues to produce over 75,000 ounces annually.
“The appointment of Stanbic and CBZ as co-lead arrangers represents an important step in executing the funding strategy we set out in January. We believe 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,” Chief Executive Officer Mark Learmonth commented on the development.
Blanket’s consistent performance has effectively positioned it as the financial anchor of the group’s expansion drive. Stable production and widening margins, supported by elevated gold prices, are strengthening free cash flow generation and enhancing Caledonia’s balance sheet at a critical stage of project development.
Against this backdrop, Bilboes represents the company’s principal growth lever.
Once developed at scale, the project is expected to materially lift group output toward a mid-tier production profile.
Previous technical studies have outlined a long-life, multi-open-pit operation capable of delivering well over 150,000 ounces per annum at steady state, more than doubling current consolidated production.
Structuring part of the financing through Zimbabwean banks is also strategically significant.
It reduces reliance on offshore project finance, diversifies capital sources, and aligns domestic financial institutions with the project’s long-term success.
When combined with hedging and convertible instruments, the funding mix balances debt exposure, dilution risk, and commodity price volatility in a high-price gold environment.
If the interim facility closes as anticipated and development momentum is maintained, Caledonia’s production profile could shift materially over the next three to four years, marking its transition from a single-asset operator into a multi-asset, growth-oriented gold producer anchored in Zimbabwe.
