Caledonia mining Chief Executive Officer (CEO) Mark Learmonth said on Wednesday that its successful international capital raising for its flagship Bilboes gold mine highlighted Zimbabwe’s renewed potential as an investment destination.
Caledonia raised $150 million last month through a seven-year convertible bond to fund the Bilboes project which, once operational, will be the largest gold mine in Zimbabwe. It already operates Zimbabwe’s 80 000 ounce per year Blanket mine.
“It’s not just a game changer for us, it’s a game changer for Zimbabwe,” Learmonth told Reuters on the side-lines of a mining conference in Cape Town.
“For a project of that size and that quality, people can’t continue to believe that Zimbabwe is uninvest able,” he added.
Caledonia’s bond issue was part of a broader strategy it is pursuing to fund Bilboes, which is expected to start production in late 2028. The mine is forecast to reach annual output of 200 000 ounces from 2029 for an initial period of 10 years.
The Bilboes project requires an estimated total capital of $584 million, with peak funding requirements at $484 million.
–Reuters–
