Karo eyes US$225m debt funding for project
KARO Mining Holdings is at an advanced stage to secure a US$225 million debt funding for the completion of the construction of its platinum project gathers steam. The balance of US$31,2 million is coming through an equity partner, the company has said.
A USS$65 million equity line availed by Karo Mining Holdings in prior year was fully utilised for the project, it said.
In a statement accompanying financial results for the year ended September 30 2024, Karo said its parent company Tharisa plc had been following through on its commitment to fund the first US$135 million of the project budget through equity and equity type instruments as well as providing various parent company guarantees for the group to secure the additional debt.
Karo said a further US$70 million equity line was availed and is being drawn down to fund project’s working capital needs as they fall due.
“As at the reporting date US$107 million had been received from Tharisa plc for utilisation on the ongoing construction work. Furthermore, management is at an advanced stage to secure debt funding amounting to US$225 million for the completion of the project construction and the balance of US$31,2 million through an equity partner,” the firm said.
Karo said its directors will continue to review the spending, investment and commitments in the project and have prepared scenarios to match the project commitments and funding availability should it be required to maintain available funds for the foreseeable future.
Meanwhile, Tharisa Capital Plc says expenditure into the group’s Karo platinum project in Zimbabwe has reached US$131,3 million since June 2022.
A total of US$17,6 million of the expenditure was spent on exploration and pre-development, the South African mining group said.
The group plans to invest US$391 million to complete phase 1 of the Karo project in Zimbabwe.
Tharisa initially targeted bringing the first ore to the mill by the second half of 2024, but the company extended the project timeline to June 2025 owing to a deterioration in global platinum group metals prices.-newsda
