Platinum group metals and chrome producer Tharisa has, subject to the fulfilment of certain conditions precedent, concluded a $130-million debt facility with Société Générale and Absa Bank, acting through its Corporate & Investment Banking division, as part of the company's ongoing debt capital programme.
Spanning a 42-month tenure, the facility is part of Tharisa's funding strategy of optimising its capital requirements as the company invests in its assets and pursues its growth objectives, while maintaining a sustainable dividend policy.
The facility comprises a term loan of $80-million and a revolving $50-million facility, secured by commodity offtake agreements. This capital raise follows the successful issue of a three-year $32-million bond listed on the Victoria Falls Stock Exchange on December 16, 2022.
"The Société Générale and Absa senior debt facilities, as well as the significant free cash flow generated from the Tharisa mine, provide significant flexibility to Tharisa's capital allocation policy. This debt raise forms part of our strict approach to capital allocation and combines ongoing investment in our producing mining operations and our growth projects, while maintaining our commitment to delivering a sustainable dividend to our shareholders, which has exceeded $80-million over the past seven years".
This agreement with Société Générale and Absa is an excellent outcome for the company, another key step in Tharisa's development as not only a hugely innovative mining group focused on critical metals, but also a company committed to sustainable growth for the benefit of all of its stakeholders," Tharisa CFO Michael Jones says.