Caledonia Mining secures US$150 million interim financing facility for Bilboes gold project
+1 new source since this summary was written
Caledonia Mining Corporation announced that its Zimbabwe subsidiary has signed an interim financing facility of up to US$150 million with a consortium of eight local banks, led by Stanbic Bank Zimbabwe and CB Z Bank. The facility consists of a US$50 million revolving credit line at SOFR + 8.10% and a US$100 million term loan at SOFR + 7.90%, with an optional US$50 million accordion. The three‑year facility, extendable by one year, is the third pillar of the company’s four‑pillar funding strategy for the Bilboes gold project, which aims to start construction in 2027 and produce its first gold in October 2028.
Why it matters
The financing gives Caledonia additional liquidity to advance Bilboes construction, reducing reliance on future long‑term project finance. Market analysts noted that the deal could boost local economic activity and export earnings if the project proceeds as planned.
Key facts
- 1The interim financing facility provides up to US$150 million. accessnewswire.com
- 2Facility A is a revolving credit line of up to US$50 million priced at SOFR + 8.10% per annum. accessnewswire.com
- 3Facility B is a term loan of up to US$100 million priced at SOFR + 7.90% per annum, with an accordion option for an additional US$50 million. accessnewswire.com
- 4The facility has a three‑year term with a possible one‑year extension. accessnewswire.com
- 5Stanbic Bank Zimbabwe and CBZ Bank act as mandated lead arrangers; the facility is syndicated to eight Zimbabwean banks. thezimbabwemail.com
- 6First gold production from Bilboes is targeted for October 2028. thezimbabwemail.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.