Online Reporter
Business Reporter
MINING and metals group Tharisa plc says the net proceeds from its oversubscribed US$300 million senior secured Nordic bond have been placed in an escrow account.
The development brings the Cyprus-headquartered group’s flagship Karo Platinum project in Zimbabwe significantly closer to full funding.
This follows the satisfaction of a major condition precedent for the five-year instrument, which was issued by Tharisa’s wholly owned finance subsidiary, Arxo Finance plc.
Priced at 98 percent of principal value, the bond carries an 11 percent semi-annual coupon and was managed by joint bookrunners DNB Carnegie and HSBC.
The release of capital from escrow remains subject to standard remaining closing conditions.
Once unlocked, the funds will directly cover remaining construction expenditures for Phase 1 of the Karo Platinum Project.
The Karo Platinum Project is a major tier-one platinum group metals (PGM) development along Zimbabwe’s Great Dyke that significantly expands national production capacity and anchors large-scale foreign investment.
It supplements existing national PGM output alongside Zimplats, Mimosa and Unki, solidifying Zimbabwe’s position as the world’s third-largest PGMs producer.
The operation targets processing its first ore at the mill by the fourth quarter of 2027.
“Reaching this milestone brings us a decisive step closer to fully funding Karo Platinum.
“Escrowing these proceeds reflects the discipline and confidence with which our lenders and investors have backed this project, and we now turn our full attention to the remaining conditions ahead of project drawdown,” chief executive Mr Phoevos Pouroulis said.
He added that escrowing the proceeds reflects the discipline and confidence of lenders and investors, allowing management to turn its full attention to remaining conditions ahead of project drawdown.
The escrow process marks the culmination of sequential operational de-risking steps by Tharisa to move Karo into its final construction phase.
The Government officially executed a 25-year Special Mining Lease for the site, establishing the long-term operational and fiscal framework.
Additionally, Karo secured a long-term commercial offtake agreement with global platinum group metals processor Valterra Platinum to purchase concentrate produced at the mine.
The mining sector provides roughly 12 percent to 15 percent of Zimbabwe’s Gross Domestic Product and accounts for over 75 percent of national export earnings, with platinum serving as a major contributor.
Most of Zimbabwe’s platinum reserves are found within the massive 550-kilometer Great Dyke geological formation running through central parts of the country.
Producing mines are Zimplats (owned by Impala Platinum) at Ngezi and Hartley, Mimosa Mine (jointly owned by Sibanye Stillwater and Impala Platinum) in Zvishavane and Unki Mine, which is owned by Valterra Platinum.
Zimbabwe’s platinum production declined by about 2 percent to 502 000 ounces in 2025, down from 512 000 ounces in 2024, weighed down by a combination of factors, including lower average grades at Mimosa and Unki and intermittent power supply cuts, but export earnings rose to US$1,9 billion due to stronger prices.
