Caledonia raises $150M to fund Zimbabwe gold project as Blanket stumbles
What's the deal? Caledonia MiningDealroom has a profile for this one. Try Dealroom → has closed an upsized $150 million convertible senior note offering to fund development of its Bilboes gold project in Zimbabwe. The AIM-traded company raised the seven-year notes after demand from North American investors topped $600 million.
Why now? The raise followed November's publication of the Bilboes feasibility study, which Caledonia wants to progress "at pace." Strong institutional appetite pushed the deal from an initial $100 million to $125 million, before a $25 million greenshoe took it to $150 million.
The terms: The notes carry a 5.875% coupon and mature in January 2033, with conversion available from October 15, 2032. The round ranks in the 95th percentile for post-IPO convertible deals in its category, a standout among 55 comparable raises.
What's the endgame? The notes form one pillar of a four-part funding plan. Caledonia is also arranging an interim bank facility of up to $150 million, running a formal project finance process, and has hedged gold at a minimum $3,500 per ounce on 3,000 ounces monthly through 2028.
The numbers: Caledonia posted 39% revenue growth in 2025, reaching $254 million, with a 46% operating margin. Operating cash flow jumped 82% to $76 million, helping sustain dividends while funding growth.
What could go wrong? The headline figure does not mean Bilboes is financed; peak funding is estimated at about $484 million, and net proceeds were roughly $130 million. In October, Caledonia cut 2026 Blanket production guidance after compressor-delivery delays and raised cost expectations to $2,650–$2,850 per ounce.
The signal: With record gold prices lifting miners, Caledonia is betting on a capital-intensive transition from a single mine to a multi-asset producer. Whether that bet pays off depends on Blanket recovering and the remaining financing landing on schedule.
Read more: fool.com
Image credit: Jocey K
