KEY POINTS
- Caledonia secured a $150 million bridge loan from eight Zimbabwean banks.
- The $584 million Bilboes project targets first gold in October 2028.
- Output is expected to reach about 200,000 ounces a year from 2029.
Caledonia Mining Corp. has secured a $150 million bridge loan from eight Zimbabwean banks to advance its Bilboes gold project, which is expected to become the country’s largest gold mine, Africa Mining Community reported.
Stanbic Bank Zimbabwe and CBZ Bank are lead arrangers on the facility, which was announced Thursday. It runs for three years, with an option to extend it by one more year.
The loan serves as interim funding. So it will support construction while Caledonia keeps working to secure longer-term project financing.
Bilboes gold project costs and timeline
The project will cost about $584 million in total, with peak funding needs estimated at $484 million. Initial development work has already started.
Caledonia expects to pour first gold in October 2028, with output rising to about 200,000 ounces a year from 2029.
The bridge loan follows a January raise, when the company sold $150 million in seven-year convertible bonds to U.S. institutional investors. That offering brought in about $130 million in net proceeds after costs. Still, Caledonia will need more long-term financing to fully fund Bilboes.
Blanket Mine cash and a record year for gold
Meanwhile, the company is leaning on its existing Blanket Mine, which produces about 80,000 ounces of gold a year. It has also introduced a hedging program to protect part of Blanket’s future gold sales from price swings and keep cash flows steady during construction.
The financing comes as Zimbabwe’s gold sector is booming. Reported gold deliveries hit a record 46.7 metric tons in 2025, up about 28% from roughly 36.5 metric tons in 2024.
However, the project’s success will depend on Caledonia finalizing its long-term funding, controlling construction costs and staying on schedule, the outlet noted.
