CALEDONIA Mining Corporation has successfully raised $150 million through a seven-year convertible bond issuance on Wednesday to support its Bilboes development, which is poised to become Zimbabwe’s largest gold mining operation.
This transaction represents the most significant international capital raising for Zimbabwe in over ten years, reflecting renewed investor confidence in a market historically affected by economic volatility and uncertain policy environments. According to Caledonia, operator of the Blanket mine with an annual output of 80,000 ounces, demand from United States institutional investors for the offering surpassed $600 million.
Mark Learmonth, CEO of Caledonia, commented, “Securing over $600 million in interest from reputable North American investors serves as a strong affirmation of our strategic direction, asset quality, operational performance, and the long-term potential of our company.”
The bond is part of a broader financial strategy for the Bilboes project, which has an estimated total cost of $584 million and peak financing needs of $484 million. Caledonia is also arranging a $150 million credit facility with Zimbabwean and South African banks and continues to engage with both regional and global lenders.
Production at Bilboes is expected to begin in late 2028, with projected annual output of 200,000 ounces starting in 2029 for at least the first ten years of operation.
This announcement coincides with a surge in spot gold prices, exceeding $4,800 per ounce, driven by increased investment in gold producers aiming to expand output. Over the past decade, Zimbabwe’s gold production has more than doubled, reaching a record 47 tons in 2025.