KEY POINTS
- Tharisa secures a $300m bond for Karo.
- Karo is expected to produce first ore in Q4 2027.
- Project could more than double Tharisa’s PGM output.
Tharisa has secured $300 million through a five-year bond to fund the construction and development of its Karo platinum project in Zimbabwe, as the mining company moves to expand its platinum group metals production.
The JSE-listed mining and metals company said it successfully priced the secured bond at 98% of its principal value, with an annual coupon of 11%.
The bond was issued through Arxo Finance, a wholly owned subsidiary of Tharisa, and will mature in five years. Interest payments will be made twice a year.
Tharisa said the bond offering was oversubscribed, attracting strong interest from institutional investors across Europe, the United Kingdom, the Middle East, North America and Asia.
The broad investor participation signals confidence in Tharisa’s financial position and its plans to develop the Karo project, which is expected to become an important addition to the company’s platinum group metals portfolio.
More than 150 investors reportedly engaged with the company during the fundraising process, giving Tharisa access to a wide pool of international capital.
Tharisa CEO Phoevos Pouroulis described the outcome as highly satisfactory, saying the financing would allow the company to complete the Karo project and significantly increase its platinum group metals output.
Karo project targets major production growth
The proceeds from the bond will be used primarily to complete construction and development work at Karo, one of Tharisa’s major growth projects in Zimbabwe.
The company expects the project to deliver its first ore to the mill in the fourth quarter of 2027, marking an important milestone in its development schedule.
Once operational, Karo is expected to more than double Tharisa’s platinum group metals production and give the company a second Tier 1 asset.
The project is therefore central to Tharisa’s strategy of expanding its mining portfolio and increasing production of platinum group metals, which are widely used in the automotive, industrial and other manufacturing sectors.
The successful bond issue provides Tharisa with a significant source of funding at a critical stage of the Karo development.
The five-year maturity gives the company time to advance the project toward production while spreading repayment obligations over a longer period.
Tharisa’s ability to attract investors from several major financial markets also gives it greater access to international capital as it pursues its growth plans.
The company said the bond settlement is expected to take place on September 24, after which the proceeds will be directed mainly toward the continued construction and development of Karo.
The Karo project is expected to play a major role in Tharisa’s efforts to increase its production of platinum group metals.
The company sees the project as a second Tier 1 asset that can strengthen its overall mining portfolio and provide a new source of production growth.
With first ore targeted for the fourth quarter of 2027, attention will now focus on completing construction on schedule and ensuring that the project moves smoothly toward commercial production.
The $300 million financing gives Tharisa additional financial capacity to push the project through its remaining development stages and pursue its longer-term production ambitions.
