Caledonia Mining Corporation has appointed Stanbic Bank Zimbabwe and CBZ Bank Limited as co-lead arrangers for its proposed interim funding facility of up to US$150 million, marking a key milestone in the miner’s funding strategy to advance the Bilboes gold project in Zimbabwe.
The interim funding facility forms part of a broader financing plan announced by the company in January 2026 to support development work at Bilboes, one of Zimbabwe’s largest undeveloped gold assets.Zimpapers publication access
Caledonia is a Zimbabwe-focused gold producer, explorer and developer, best known for operating the Blanket Mine, in which it holds a 64 percent stake. Headquartered in Jersey, the company is transitioning from a single-asset producer to a multi-asset operator, with key projects including Bilboes, Motapa (near Bulawayo) and Maligreen in Gweru.
Acquired in 2023, Bilboes is expected to become the largest gold mine in Zimbabwe, with an annual production forecast of approximately 200 000 ounces of gold.
In a statement, Caledonia said the funding facility is expected to be in place by mid-2026, subject to customary lender processes and regulatory approvals.
Chief executive officer Mr Mark Learmonth said the appointments represented an important step in implementing the company’s funding strategy.
“The appointment of Stanbic and CBZ as co-lead arrangers represents an important step in executing the funding strategy we set out in January,” he said.
He added that the interim facility would improve the group’s financial flexibility as it moves its growth agenda forward.
“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,” he said.
The company had launched, in November 2025, a process to arrange interim funding with a consortium of Zimbabwean and South African commercial banks.
Following what it described as encouraging engagement from participating lenders, Caledonia, working with its advisers, reviewed all submissions and assessed alternative structures before settling on the two local banks as co-lead arrangers.
Stanbic Bank Zimbabwe is a member of Standard Bank Group, while CBZ Bank Limited is one of Zimbabwe’s largest locally owned financial institutions.
Caledonia believes the appointments underscore the growing role of domestic and regional banks in funding large-scale mining developments in the country.
“The interim funding facility is designed to bridge financing requirements as Caledonia moves the Bilboes gold project through its next stages of development,” it said.
According to Caledonia, Bilboes, situated 75 kilometres from Bulawayo, is expected to become a significant contributor to the company’s production profile once developed, complementing cash flows from the existing Blanket Mine.
On January 6, 2023, Caledonia Mining Corporation completed the acquisition of Bilboes Gold Limited for a total consideration of 5 123 044 Caledonia shares, representing about 28,5 percent of its fully diluted equity, plus a 1 percent net smelter royalty on project revenues.
Bilboes is a large, high-grade gold project located about 75 kilometres north of Bulawayo, Zimbabwe.
The project hosts probable mineral reserves of 1,96 million ounces of gold at an average grade of 2,29 g/t, with total measured, indicated and inferred resources exceeding 5,1 million ounces.-herald
