Tharisa’s Karo acquisition considered fair to shareholders

JOHANNESBURG Stock Exchange (JSE)-listed integrated resource group Tharisa’s acquisition of a controlling interest in platinum group metals (PGMs) miner Karo Mining Holdings, which was announced on March 31, has been ruled fair insofar as the shareholders of Tharisa are concerned.

The group announced on May 18 that the fairness opinion had been reviewed by the JSE and that the full text of the independent expert’s fairness opinion would be available for inspection at Tharisa’s head office in Cyprus for the next 28 days.

In March, Tharisa executed its option to farm-in and acquire a controlling stake in Karo Holdings for US$27m.

Under the terms of the deal, Tharisa’s stake in Karo would increase from 26,8% to 66,3%, by issuing 13,69 million new Tharisa shares to the Leto Settlement Trust, which would retain the remaining 33,7%.

Tharisa had previously advised shareholders that the acquisition was classified as a small related party transaction in terms of the JSE listing requirements.

Accordingly, a fairness opinion was required to be provided by an independent professional expert with respect to a small related party transaction.

Financial services provider Mazars Corporate Finance was appointed by Tharisa as the independent expert in relation to the acquisition.

Tharisa has positioned itself in the energy transition and decarbonisation of economies.

The group’s operations include mining, processing, exploration and the beneficiation, marketing, sales and logistics of PGMs and chrome concentrate.

Its principal operating asset is the Tharisa mine, located in the south-western limb of the Bushveld Complex.

The mechanised mine has a 20-year open pit life and the ability to extend operations underground by an additional 40 years.

In addition to the Karo PGMs mining project, Tharisa owns Salene Chrome. Both projects are development stage, low-cost, openpit assets located on the Great Dyke in Zimbabwe
— Mining Weekly