Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
KARO Mining Holdings, a subsidiary of South Africa’s platinum group producer Tharisa Plc, is seeking shareholder approval to extend the maturity of its Victoria Falls Stock Exchange-listed bond by three years to December 2028 to align its financing with project development timelines.
The South African mining group is developing the Karo PGMs project on Zimbabwe’s mineral rich Great Dyke belt, one of several such initiatives in the country, the world’s third largest producer after South Africa and Russia.
Karo Mining shareholders are expected to deliberate on the proposed changes during an extraordinary general meeting (EGM) scheduled for November 7.
In a notice to shareholders, the company said five resolutions would be tabled at the Extraordinary General Meeting, including extension of the bond tenor, interest rate adjustment, removal of the obligation to pay interest upon early redemption, introduction of a guarantee fee, and relevant authorisations.
“That the maturity date of the VFEX listed bond is hereby extended for a period of three (3) years, such that the new maturity date shall be the 1st of December 2028,” reads part of the notice.
The company also seeks to increase the bond’s interest rate to reflect current market dynamics.
“That subject to approval of the Extraordinary Resolution 1, the interest rate payable on the principal amount of the Karo Mining Holdings plc VFEX listed bond is hereby increased from 9,5 percent per annum to 11 percent per annum, effective from 1 December 2025, payable in accordance with the interest payment provisions of the Placing Agreement,” the company said.
On the early redemption clause, Karo Mining proposes to remove the obligation to pay interest until maturity once the bond is redeemed early.
“That subject to approval of the Extraordinary Resolution 1, notes shall continue to be redeemable prior to the final redemption date at the option of the issuer (early redemption).
In such case, upon the issuer giving to the bondholders notice of early redemption, the issuer will redeem in whole (but not in part) the note(s) specified in such notice, together with interest accrued and unpaid thereon, if any, to the date fixed for early redemption and shall not have any obligation to pay interest that would otherwise be payable until the final redemption date.”
The Karo Platinum Project, located on Zimbabwe’s Great Dyke, is one of only two new large-scale platinum group metals (PGM) developments, globally progressing amid tightening supply and sustained demand.
Construction of the project commenced in December 2022, financed through an equity commitment of US$160 million from the guarantor and proceeds from the VFEX-listed bond. However, development slowed down in 2024 due to low commodity prices.
By July 2025, the company had spent US$178 million, significantly advancing and de-risking project execution.
Key milestones achieved include completion of design and engineering works, 80 percent progress on civil construction and 90 percent procurement of long-lead mechanical and electrical equipment.
Securing of bulk water and power supply and commissioning of a PGM pilot plant to support data collection for the commercial concentrator are other key developments.
“The updated mine development entails a peak spend of US$546 million with first ore in mill 15 months after financial close.
“ The mine will produce approximately 220 000 ounces per annum of PGMs at steady state for the 10-year first phase of the Project from open pit mining.
“Thereafter, underground mining will continue for the remaining life of mine, which is projected to exceed 50 years,” the company said.
