Caledonia Signs Up to US$150 Million Interim Facility for Bilboes Gold Project
Caledonia Mining has signed an interim financing facilities agreement of up to US$150 million as it advances funding for the Bilboes Gold Project in Zimbabwe.
Caledonia Mining Corporation Plc has signed an interim financing facilities agreement of up to US$150 million through its subsidiary Caledonia Holdings Zimbabwe (Private) Limited. The arrangement is intended to provide additional funding flexibility as the company advances its financing strategy for the Bilboes Gold Project in Zimbabwe.
The facility will terminate 36 months from its effective date, with an option for a one-year extension. It consists of two separate tranches, each with its own terms.
Facility A is a revolving credit facility of up to US$50 million. It carries interest at SOFR plus 8.10% per annum and will remain available until one month before the facility’s maturity. Initial utilisation of Facility A is subject to certain conditions, including the implementation of additional hedging arrangements.
Facility B is a term facility of up to US$100 million, with an accordion option of up to a further US$50 million. Interest is set at SOFR plus 7.90% per annum. The tranche has an 18-month availability period and capital repayment pause, after which drawn amounts will be repaid through quarterly repayments.
The company defines SOFR as the secured overnight financing rate for the relevant period. Further terms and conditions apply to the financing arrangement.
Stanbic Bank Zimbabwe Limited and CBZ Bank Limited, acting through CBZ Capital, arranged the facility as mandated lead arrangers. The financing was syndicated across Stanbic Bank, CBZ Bank Limited, Central African Building Society, FBC Bank Limited, FBC Crown Bank Limited, First Capital Bank Limited, NMB Bank Limited and ZB Bank Limited.
Caledonia said the interim facility is the third pillar of a four-part funding strategy for Bilboes. The first pillar, a gold price hedging programme, was implemented in December 2025. It covers 3,000 ounces per month through December 2028 and establishes a floor price of US$3,500 per ounce through put options, while retaining participation in increases in the gold price. The company said further hedging will be required in due course to match the tenor of the facility.
The second pillar was completed in January 2026, when Caledonia completed an upsized US$150 million convertible notes offering that generated approximately US$130 million in net proceeds.
The fourth pillar, longer-term project finance, remains in progress. Caledonia said it is continuing discussions with regional and international financial institutions, while due diligence and lender engagement are taking place alongside the interim facility.
#Project development and forward-looking statements
Caledonia said initial ground works at Bilboes are underway and that main construction is planned during 2027 and 2028. The company has said the project remains on track to deliver first gold in October 2028.
These statements are forward-looking and are subject to risks and uncertainties identified by Caledonia. The company cited potential factors including project delays, difficulties obtaining required approvals, equipment availability, ground conditions, labour availability, changes in capital and operating costs, plant performance, fluctuations in commodity prices and currency movements. Caledonia also cautioned that actual results may differ materially from its forward-looking information.
Caledonia Mining Corporation Plc announced on November 5, 2026 that its subsidiary, Caledonia Holdings Zimbabwe (Private) Limited, had signed an interim financing facilities agreement of up to US$150 million. The facility is intended to provide additional funding flexibility while the Group advances its financing strategy for the Bilboes Gold Project in Zimbabwe.
The facility has a termination date of 36 months from its effective date, with an option for a one-year extension. It comprises a revolving credit facility of up to US$50 million and a term facility of up to US$100 million, with an accordion option of up to a further US$50 million.
Facility A carries interest at the secured overnight financing rate for the relevant period, or SOFR, plus 8.10% per annum. It is available until one month before the facility's maturity, subject to conditions including the implementation of additional hedging arrangements for its initial utilisation.
Facility B carries interest at SOFR plus 7.90% per annum and has an 18-month availability period and capital repayment pause. After that period, amounts drawn will be repaid through quarterly repayments.
Stanbic Bank Zimbabwe Limited and CBZ Bank Limited, acting through CBZ Capital, arranged the facility as mandated lead arrangers. It was syndicated across Stanbic Bank, CBZ Bank Limited, Central African Building Society, FBC Bank Limited, FBC Crown Bank Limited, First Capital Bank Limited, NMB Bank Limited and ZB Bank Limited.
Caledonia Mining Corporation Plc said the facility represents the third pillar of its four-pillar funding strategy for Bilboes. The other pillars are a completed gold price hedging programme, a completed convertible notes offering and longer-term project finance, which remains in progress.
Caledonia Mining Corporation Plc implemented a gold price hedging programme in December 2025 covering 3,000 ounces per month through December 2028, with a floor price of US$3,500 per ounce. In January 2026, it completed an upsized US$150 million convertible notes offering that generated approximately US$130 million in net proceeds.
Caledonia Mining Corporation Plc said discussions with regional and international financial institutions over a longer-term project financing package remain in progress. Due diligence and lender engagement processes are ongoing and are running in parallel with the interim facility, while further hedging is required in due course to match the facility's tenor.
The facility is intended to support the development of the Bilboes Gold Project in Zimbabwe while Caledonia Mining Corporation Plc advances discussions with prospective providers of long-term project finance. The company said initial ground works at Bilboes are underway, with main construction planned during 2027 and 2028.
Caledonia Mining Corporation Plc said Bilboes remains on track to deliver first gold in October 2028. This is forward-looking information and the company cautioned that actual results may differ materially because of risks and uncertainties including project delays, approvals, operating and capital costs, equipment availability, ground conditions and fluctuations in commodity prices.
Chief Executive Officer Mark Learmonth said Bilboes is expected to transform Caledonia Mining Corporation Plc's production profile and that the company remains focused on advancing the project towards development. The company also said Bilboes is expected to be a transformational growth project and a key component of its strategy to become a larger, multi-asset Zimbabwe-focused gold producer; these statements are subject to the risks and uncertainties described in the announcement.
The source identifies Caledonia Mining Corporation Plc as trading on NYSE AMERICAN under CMCL, AIM under CMCL and VFEX under CMCL.