Tharisa expands Zimbabwe exposure with $4.5 million platinum deal
Chrome producer Tharisa (LON:THS) grew its exposure to Zimbabwe on Wednesday by acquiring a 26.8% stake in Karo Mining Holdings for $4.5 million, gaining access to 23,903 hectares of land in the country Great Dyke, which has a potential for 96 million ounces of platinum and palladium.
The miner, which last month bought chrome business Salene in the landlocked country, said the area contained the world’s largest known platinum group metal (PGM) deposits outside of South Africa.
The land, said the South African firm run by the Pouroulis family, was released for investment by Zimbabwe Platinum Mines, as part of the government’s drive to open up the country’s mining sector to foreign investors.
Tharisa also said it had provided Karo with an $8 million repayable debt facility to finance initial geological exploration and sampling work in the area to determine a compliant mineral resource, which would enhance the value of the investment.
Zimbabwe is trying to revamp its depressed economy after former president Robert Mugabe, accused of crushing it during his 37-year rule, was forced to step down by the military last year.