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Tharisa closes US $130M deal for mining operations in SA

Platinum Group Metals production company Tharisa Plc has sealed a debt facility deal with French-based multinational financial services company, Société Générale and South African financial services firm, Absa Bank Limited.

Facility deal

The US $130million deal which was secured by commodity offtake agreements is aimed at boosting the company’s operating capital – will fund the firm’s growth strategy within South Africa’s expanding critical minerals industry. The facility which spans three and a half years, is made up of a loan of $80m and a revolving $50m facility.

“This debt raise forms part of our strict approach to capital allocation and combines ongoing investment in our producing mining operations and our growth projects,” chief financial officer, Michael Jones said.

Tharisa is targeting full year production of between 175,000 oz and 185,000 oz of PGMs and chrome concentrate production of 1.75 million tons (Mt) and 1.85Mt. It produced 179,000 oz in PGMs and 1.58Mt of chrome in its 2022 financial year ended September. The firm is expected to begin production in July 2024 with an initial output of 194,000 ounces. Last December, Tharisa said it had raised $31.8m for the Karo project through a three-year bond issue on Zimbabwe’s Victoria Falls Stock Exchange.

 

 

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