Dual-listed Tharisa has announced the opening of a fixed income note offer by its subsidiary Karo Mining to raise $50-million to be listed by way of introduction on the Victoria Falls Stock Exchange (VFEX).

The proceeds from the bond will be applied to part fund the Karo platinum project in Zimbabwe.

The capital raise forms part of a broader capital strategy by Tharisa to develop the Karo project on time and on budget.

Tharisa is a 70% shareholder in Karo Mining, a company incorporated in Cyprus, which in turn indirectly owns 85% of the Karo project, with the Zimbabwean government holding the remaining 15%, on a free carry basis.

The project is scheduled to begin production, with first ore milled, in July 2024.

Groundbreaking is expected to take place in December. A local earthworks contractor has been appointed and is expected to start on-site activities in December, marking the beginning of the Karo construction phase.

The proceeds from the issue of the bond, net of costs, will be used to part fund the development of the Karo project, which has a total capital cost for Phase 1 of $391-million.

The bond is dollar denominated and will be issued in minimum denominations of $2 500 by way of a private placement. The bond is not rated and will be guaranteed by Tharisa. The minimum amount to be raised from the bond is $25-million.

The VFEX has approved the listing of the bond. Participation in the bond will be by way of private placement and is not restricted to Zimbabwean financial institutions or residents.

Arxo Finance, a wholly-owned subsidiary of Tharisa, which was established to provide funding to Tharisa group companies, has committed to subscribe for $10-million of the notes.

“This is a historic moment for Tharisa and our tier-one Karo platinum project on the Great Dyke in Zimbabwe. From our discussions to date with potential investors, both in Zimbabwe and abroad, we have received extremely positive feedback for this robust investment opportunity, boasting highly attractive returns.

“We expect strong participation from Zimbabwean investors in particular. This interest stems from Tharisa’s strong track record in developing projects on time and on budget, as well as the outstanding fundamentals of the Karo platinum project,” says CEO Phoevos Pouroulis.