Tharisa confirms fixed income note listing for Karo platinum project

Tharisa, a listed chrome producer, has made headlines with the successful listing of a fixed income note by its subsidiary, Karo Mining Holdings, on the Victoria Falls Stock Exchange. This move marks a significant milestone for the company as it aims to raise funds for the development of the Karo Platinum Project. Michael Jones, the CFO of Tharisa, provided insights into this groundbreaking initiative in a recent interview with CNBC Africa. The Karo Platinum Project, a Tier 1 development stage asset located on the Great Dyke in Zimbabwe, has a capital cost of $391 million. The project aims to produce approximately 190,000 ounces per annum of Platinum Group metals once operational. To fund this ambitious project, Tharisa opted to issue a bond for the first time in Zimbabwe, listing it on the Victoria Falls Stock Exchange, which operates within a special economic zone. This strategic move not only enables local institutions to participate in the funding of the project but also attracts international investors, with European shareholders contributing $10 million alongside South African and retail investors. Jones emphasized the significance of this bond listing, highlighting its innovative nature in the Zimbabwean market. The Victoria Falls Stock Exchange, a relatively new player in the financial landscape, offers a unique platform for dollar-based investments and provides enhanced investor protections such as improved withholding taxes and retention of proceeds. By tapping into the local institutional market, Tharisa aims to diversify its funding sources and promote economic growth within Zimbabwe. With a three-year bond offering a 9.5% coupon rate in USD, investors have the opportunity to support a secured and guaranteed investment backed by TZPLC, Tharisa's parent company. The successful listing of the bond on the Victoria Falls Stock Exchange showcases the growing potential of the Zimbabwean financial sector and sets a precedent for future fundraising initiatives. Despite facing some delays in the regulatory approval process, Tharisa navigated the complexities of listing a bond with the support of the Victoria Falls Stock Exchange and its advisors. Jones expressed satisfaction with the outcome of the listing, noting the accommodating nature of the exchange and their commitment to facilitating the issuance of the bond. While the company aims to secure pre-scrubbed asset status in Zimbabwe, additional capital raising efforts are underway to maximize the funding potential for the Karo Platinum Project. As of now, Tharisa has secured $32 million through the subscription of the bond, surpassing the initial target of $25 million. The company remains optimistic about reaching its goal of $50 million and is considering a tap issue in the near future to attract more investors. With continued support from both local and international investors, Tharisa is poised to achieve its funding objectives and advance the development of the Karo Platinum Project.