Tharisa raises nearly $300 million for Zimbabwe platinum project

Tharisa Plc (JSE: THA) said on Friday it had raised $294 million through a Nordic bond issue mainly to complete the construction of its Karo platinum mine in Zimbabwe, which is expected to start production in the final quarter of 2027.

Tharisa said in a statement that it issued a $300 million five-year senior secured bond at 98% of the principal value, with a semi-annual coupon of 11.00% per annum.

The integrated platinum group metal (PGM) and chrome producer operating in South Africa is developing Karo platinum mine on Zimbabwe’s Great Dyke, which is expected to produce 226,000 ounces of PGMs in the first phase.

That would more than double Tharisa’s current PGM output, CEO Phoevos Pouroulis said.

The bond offering was oversubscribed and attracted demand from a broad base of international institutional investors across Europe, the United Kingdom, the Middle East, North America, and Asia, Tharisa said.

Tharisa said the pricing of the bond reflects both the jurisdiction in which the project sits and the fact that Karo is still in construction.

The Karo project was granted a 25-year special mining lease by the government of Zimbabwe on August 24, a key step in advancing the project.

Karo has also agreed an offtake deal to sell platinum concentrate to Valterra Platinum (JSE: VAL).