Caledonia Mining Corporation Plc has secured a $150 million interim credit facility, with Stanbic Bank Zimbabwe and CBZ Bank Limited acting as co‑lead arrangers. The facility is expected to be in place by mid‑2026 and will be used to fund the development of the company’s Bilboes gold project in Zimbabwe.
The interim facility is part of a broader financing strategy that also includes a $150 million upsized convertible senior notes offering that closed on January 21 2026. The notes carry a 5.875 % coupon, mature on January 15 2033, and have a conversion price of approximately $40.51 per share. In addition, Caledonia has a hedging programme that locks in a minimum gold price of $3,500 per ounce on 3,000 ounces of Blanket Mine production per month through the end of 2028.
The Bilboes project is a flagship asset with a total estimated cost of $584 million and a peak finance requirement of $484 million. Feasibility studies show a net present value of over $580 million at an 8 % discount rate and a gross‑rate of $2,548 per ounce, with an internal rate of return exceeding 32 %. Production is projected at 200,000 ounces per year for the first ten years, beginning in 2029.
Caledonia’s Blanket Mine continues to provide a stable cash‑flow base. In 2025 the mine produced 76,213 ounces of gold, matching output for the two prior years. Quarterly performance shows a 5.1 % increase in first‑half 2025 production (39,741 ounces) over the first half of 2024, and a record second‑quarter output of 21,070 ounces versus 20,773 ounces in Q2 2024. The mine’s cash generation will support the interim facility and the broader Bilboes financing plan.
Mark Learmonth, Caledonia’s Chief Executive Officer, said, "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."
The announcement was well received by investors, with Caledonia shares up 1.4 % at 2,190 pence in London following the news, reflecting confidence in the company’s ability to advance the Bilboes project without diluting shareholders.
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