Caledonia Mining appoints arranger banks for $150m Bilboes facility

(Sharecast News) - Caledonia Mining Corporation announced on Monday that it has appointed Stanbic Bank Zimbabwe and CBZ Bank as co-lead arrangers for its planned interim funding facility of up to $150m, as the gold producer advanced financing plans for the Bilboes project in Zimbabwe.

The AIM-traded company said the facility formed part of the broader funding strategy announced in January.

As previously disclosed, Caledonia launched a process in November to secure an interim funding facility of up to $150m from a consortium of Zimbabwean and South African commercial banks to support the development of the Bilboes gold project.

Following what it described as encouraging engagement with participating banks, management and its advisers reviewed all submissions and assessed the alternatives proposed before selecting the two institutions.

Stanbic Bank Zimbabwe is a member of Standard Bank Group.

Caledonia said it expected the interim funding facility to be in place by the middle of the year, subject to customary lender processes and approvals.

"The appointment of Stanbic and CBZ as co-lead arrangers represents an important step in executing the funding strategy we set out in January," said Mark Learmonth, chief executive officer.

"We believe this facility, together with our hedging programme, the proceeds from the convertible notes offering and internal cash generation from Blanket Mine will provide additional financial flexibility as we continue to advance our growth plans."

At 0904 GMT, shares in Caledonia Mining Corporation were up 0.97% at 2,181p.

Reporting by Josh White for Sharecast.com.