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Tharisa expands footprint in Zimbabwe with stake in Karo Mining

The miner said it had acquired a 26.8% stake in Karo for a total cash consideration of US$4.5mln

Platinum bars
Tharisa has provided Karo with an US$8mln repayable debt facility to finance exploration

Tharisa PLC (LON:THS) has acquired a stake in Karo Mining Holdings Limited, a company with interests in both platinum and coal mining in Zimbabwe.

The miner said it had acquired a 26.8% stake in Karo for a total cash consideration of US$4.5mln following an investment agreement between Karo and the government of Zimbabwe in March to establish a platinum group metals (PGMs) mine, concentrators, smelters, a base metal and precious metals refinery, as well as power generation capacity for the operations with surplus energy capacity made available to the Zimbabwe power grid.

WATCH: Tharisa PLC acquires stake in a 'once in a lifetime opportunity' in Zimbabwe

Tharisa added that the acquisition provided it with access to an area in the Great Dyke of Zimbabwe covering 23,903 hectares and estimated to contain a PGM resources of around 96 Moz (on a 4E basis).

The group said it had also provided Karo with an US$8mln repayable debt facility to finance initial geological exploration and sampling work in the License Area to determine a compliant mineral resource which would enhance the value of the investment.

Tharisa made its first move into Zimbabwe in May when it acquired a 90% stake in Salene Chrome, a company which holds three grants over around 9,500 hectares of land in the Great Dyke.

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Price: 110.5 GBX

LSE:THS
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Market Cap: £294.6 m
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