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AFDB looks forward to funding a $250 million gold mine in Zimbabwe 

The African Development Bank (AFDB) has shown great interest in funding Caledonia Mining Corporation’s planned $250 million gold mine in Zimbabwe.

The information was relayed by Mark Learmonth the company’s CEO.

According to Reuters, Caledonia which already owns a blanket gold mine in Zimbabwe is conducting a feasibility study with the aim of constructing a new mine at Bilboes with a capacity to produce 170,000 ounces of gold annually, making it potentially the country’s biggest gold mine.

The company is in preliminary talks with the “most likely lenders”, Learmonth said during a conference call.

The CEO explained that debt would form bulk of the funding for the project.

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The CEO further explained that as soon as funding is in place which might take a year, construction of the mine should be done in two years.

Before the promise of this new funding, Caledonia’s operating profit plunged 62% to $15.18 million in 2023, from $40.28 million a year earlier, mainly due to higher administrative and production costs.

Caledonia backed by global financial powerhouse Blackrock and Cape Town-based fund manager Allan Gray is one of the few foreign investors in Zimbabwe braving its tough economy market plagued by foreign exchange shortages and hyperinflation.

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