Sept 12 – Tharisa Plc has raised $294 million through a Nordic bond issue to help complete construction of its Karo platinum mine in Zimbabwe, with production expected to begin in the final quarter of 2027.
The South Africa-based platinum group metals and chrome producer issued a $300 million five-year senior secured bond at 98% of its principal value. The bond carries an annual coupon of 11%, with interest payable semi-annually.
Tharisa said the offering was oversubscribed, attracting demand from international institutional investors across Europe, the United Kingdom, the Middle East, North America and Asia.
The financing will primarily support the development of Karo, a major platinum project located on Zimbabwe’s Great Dyke, one of the country’s most important mineral belts.
Karo set to more than double Tharisa’s PGM output
The first phase of Karo is expected to produce approximately 226,000 ounces of platinum group metals annually. Tharisa Chief Executive Phoevos Pouroulis said the project would more than double the company’s current PGM production once operational.
The scale of the planned mine positions Karo as a significant addition to Zimbabwe’s mining sector, which has increasingly attracted investment targeting platinum, lithium, gold and other minerals.
The project recently received an important regulatory boost after the Zimbabwean government granted Karo a 25-year special mining lease on August 24, strengthening the project’s legal foundation as construction progresses.
Karo has also secured an offtake agreement under which Valterra Platinum will purchase its platinum concentrate, providing an established market for a portion of the mine’s future production.
Financing reflects Zimbabwe project risk
Tharisa said the pricing of the bond reflects both the jurisdictional risk associated with Zimbabwe and the fact that Karo remains under construction. The 11% coupon illustrates the relatively high cost of capital associated with financing a large-scale mining project that has yet to generate operating cash flow.
Nevertheless, strong investor demand for the offering indicates continued international appetite for exposure to platinum group metals and African mining projects, particularly those capable of adding substantial future production.
For Tharisa, Karo represents a major expansion of its PGM portfolio and could materially change the company’s production profile once the mine reaches full operating capacity.
The project also comes at a time when Zimbabwe is seeking greater investment across its mining industry and deeper participation in global mineral supply chains.
With financing now secured and the special mining lease in place, the focus shifts to construction execution and whether Tharisa can deliver first production on schedule in late 2027.
