A platinum grop metals producer, with significant exploration activity in South Africa, has opened the doorway to Zimbabwe after acquiring a stake in a fellow producer.
Tharisa has announced in a statement this week that it has acquired a 26.8% stake in Karo Holdings to “secure access” to a tier one PGM resource on the Great Dyke in Zimbabwe.
The acquisition, which represents a cash consideration of $4.5 million, will see Tharisa granted access to Karo Holdings’ PGM mining rights under a special grant covering an area of 23 903 hectares situated on the Great Dyke in the Mashonaland West District of Zimbabwe.
The Great Dyke of Zimbabwe contains the world’s largest known PGM deposits outside of South Africa.
In return, Tharisa has agreed to provide a US$8 million debt facility to Karo Platinum for the initial geological exploration and sampling work to determine a compliant mineral resource. Tharisa will manage the exploration and oversee the subsequent bankable feasibility study.
“The acquisition presents an attractive opportunity to expand Tharisa’s PGM mining interests into Zimbabwe. It provides Tharisa with a low cost, low risk entry into a new geography and to access development projects that will offer the Group the chance to replicate the success achieved at Tharisa Minerals,” says Tharisa COO Michelle Taylor.
Tharisa owns and operates Tharisa Minerals, a PGM and chrome co-producer, located on the Bushveld Complex in South Africa. The Karo Holdings acquisition is Tharisa’s second project in Zimbabwe after the acquisition of a 90% stake in Salene Chrome, the holder of special grants over an area of approximately 9 500 hectares of highly prospective illuvial chrome properties on the eastern side of the Great Dyke in Zimbabwe.