HARARE, Nov 6 – Caledonia Mining Corporation has secured a $150 million bridge financing facility from a consortium of eight Zimbabwean banks to support the development of its Bilboes gold project, which is expected to become the country’s largest gold mine once operational.
The three-year facility, with an option to extend for an additional year, provides interim funding as the company advances discussions on long-term project financing. The agreement gives Caledonia greater financial flexibility as it moves ahead with initial development works at the site.
Initial works at Bilboes have commenced, with production expected to begin in October 2028. The mine is projected to reach annual output of 200,000 ounces from 2029, significantly expanding the company’s production capacity in Zimbabwe.
The project has an estimated total development cost of $584 million, with peak funding requirements of $484 million.
Caledonia has pursued several financing measures to support the investment. In January 2026, the company raised $150 million through an oversubscribed seven-year convertible bond offering backed by US institutional investors.
It has also hedged production from its Blanket Mine, which produces approximately 80,000 ounces of gold annually. The hedging programme is intended to protect cash flows and support the development of Bilboes through internally generated resources.
The Bilboes project is expected to strengthen Zimbabwe’s position as a major African gold producer. The country’s gold output reached a record 46.7 metric tons in 2025, up from 36.5 tons in 2024, reflecting an increase in production across its mining sector.
Once completed, Bilboes will represent a substantial addition to Zimbabwe’s gold production capacity, while providing Caledonia with a larger operating base and a longer-term growth platform in the country.
