Karo bond over subscribed

Karo Mining Holdings’ bond issue was oversubscribed generating US$31,8 million worth of interest, exceeding the minimum requirement of US$25 million ahead of the bond listing on the Victoria Falls Stock Exchange (VFEX) yesterday.

This comes after securing regulatory approvals.

“The issuer has received applications to subscribe for Notes as well as being advised of credit committee approval, subject to completing certain administrative processes, to subscribe for Notes, totaling US$31,8 million – exceeding the minimum requirement of US$25 million.

“As such, applications have been granted in full and the Notes will be issued out to applicants in terms of the timetable where the subscription proceeds have been received, or on receipt of the subscription proceeds where the funds are still to flow.

“Interest on the issued Notes will accrue from the date of issue thereof. The issued Notes will be listed on the VFEX on 16 December 2022 and, were issued subsequent to this date, on the business day following issue,” said parent company Tharisa in a notice to stakeholders.

Tharisa is a platinum group metals (PGMs) and chrome co-producer dual-listed on the Johannesburg and London stock exchanges.

According to the group, proceeds from the bond will be applied to part fund the Karo Platinum Project – a development stage, low-cost, open-pit PGM asset, located on the Great Dyke.

The PGM project on the Great Dyke is scheduled to commence production with first ore milled in July 2024. But ground-breaking using a local earthworks contractor has commenced, marking the beginning of the construction phase.

Tharisa is a 70 percent shareholder in KHM, a company incorporated in the Republic of Cyprus, which in turn indirectly owns 85 percent of the project on the Great Dyke, while Government holds the remaining 15 percent, on a free carry basis.

The KMH project is a long-life asset that will be developed in phases to extract the PGM and base metal resources with capacity to increase GDP by 2 percent.

“The initial phase of the Karo Project is estimated to increase Zimbabwe’s PGM production by some 18,7 percent and grow the country’s GDP by circa 2 percent.

“It will also result in the creation of an estimated 1 000 direct employment opportunities with an estimated 7 000 additional indirect employment opportunities as a result of the multiplier effect,” said Tharisa.-newsday