Caledonia Plans Major Investment In Zimbabwe Gold Projects In 2026

Caledonia Mining Corporation plans to spend US$162.5 million on capital projects this year, including funding for the development of what could become Zimbabwe’s largest gold mine.

In a production update, Caledonia CEO Mark Learmonth said the company intends to spend US$132 million on developing the new Bilboes Mine, subject to board approval and the availability of funding. Said Learmonth:

“The planned capital expenditure will support ongoing production at Blanket and advance the development of the Bilboes project and exploration at Motapa, where we see long-term, value-enhancing synergies with Bilboes.”

Caledonia operates Blanket Mine, which produced 76,213 ounces of gold in 2025, matching its output from the previous two years.

The company plans to expand its portfolio with additional mines, the largest being the Bilboes project, which requires an investment of US$584 million.

Caledonia expects Bilboes to start production in 2028, with an anticipated annual output of 200,000 ounces from 2029 over the next ten years.

To fund the Bilboes project, Caledonia is raising capital through a combination of non-recourse senior debt, contributions from its existing operations, and specialised financing methods such as streaming, where investors provide cash in return for a share of future gold production.

On Thursday, the company announced a US$125 million convertible bond offering, an increase from the US$100 million initially planned.

The bonds, which mature in 2033, will pay an annual interest of 5.875% and are expected to close on 20 January 2026.

The funds raised will be mainly used to develop Bilboes and cover working capital needs. Part of the proceeds will also be spent on financial hedging arrangements to reduce the potential impact on shareholders if the bonds are later converted into equity.

More: newZWire