Mining group Tharisa has secured US$300 million in five-year debt financing to complete construction of its Karo Platinum Project in Zimbabwe, providing a major boost to a development that has faced delays and funding constraints.
The bond, raised from international investors, carries an annual interest rate of 11%, payable semi-annually, and was issued at 98% of face value. This means Tharisa receives slightly less than US$300 million upfront while remaining liable for the full principal at maturity.
The financing was oversubscribed, with more than 150 investors participating from Europe, the United Kingdom, the Middle East, North America and Asia, a strong response that Tharisa says reflects improving confidence in Karo as construction advances.
The project, located on Zimbabwe’s Great Dyke, is expected to significantly expand Tharisa’s platinum group metals production when it reaches full capacity. The company is targeting first production in 2027.
Tharisa chief executive Phoevos Pouroulis said the bond pricing nevertheless reflected the risks associated with financing a project still under construction in Zimbabwe.
“The pricing reflects both the jurisdiction in which the project sits and the fact that Karo is still in construction.”
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The 11% coupon therefore highlights the cost of accessing international capital for a Zimbabwe-based mining development, despite strong investor demand.
Pouroulis said Tharisa expects that cost to fall if Karo successfully moves from construction into production and establishes a track record with lenders.
“As the project is commissioned and we establish a track record with this investor base, we would expect our cost of capital to reflect that progress.”
The financing comes after Tharisa secured a 25-year Special Mining Lease from the Zimbabwean Government and entered into a five-year offtake agreement with Valterra Platinum for Karo’s future concentrate production.
Tharisa had previously disclosed that approximately US$241 million had already been invested in Karo by March 2026, with about US$300 million required to reach project completion.
The new debt therefore represents a substantial portion of the remaining funding requirement and could remove one of the project’s biggest obstacles as Tharisa pushes towards commissioning.
Karo is expected to almost double Tharisa’s annual PGM production to just under 400,000 ounces once fully ramped up, making the project central to the company’s expansion strategy beyond its established South African operations.
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