Caledonia Mining (LSE:CMCL) said on Thursday it signed a US$150 million ($213.78 million) bridge financing facility with a consortium of eight Zimbabwean banks, to help fund its Bilboes project, which, once operational, will be the country’s biggest gold mine.
Initial works at Bilboes have started and the mine is expected to start production in October 2028, reaching annual output of 200,000 ounces from 2029.
The project has an expected total cost of US$584 million and peak funding requirements of US$484 million.
The three-year interim financing facility, with an option of a one-year extension, gives Caledonia additional funding flexibility as it advances discussions on long-term project finance.
Caledonia raised US$150 million in January 2026 through an oversubscribed seven-year convertible bond offering backed by US institutional investors.
The company has also hedged production from its approximately 80,000-ounce-a-year Blanket Mine to protect cash flows and contribute to funding the development of Bilboes from internal resources.
Bilboes is expected to bolster Zimbabwe’s resurgence as a major African gold producer, after the country’s output climbed to a record 46.7 tonnes in 2025 from 36.5 tonnes in 2024.
(Reporting by Nelson Banya)
Main image: Caledonia Mining
