Tharisa Plc has raised $294 million through a Nordic bond issue to help complete construction of its Karo platinum mine in Zimbabwe, with production expected to begin in the fourth quarter of 2027.

The Cyprus-based mining group said Friday that it issued $300 million of five-year senior secured bonds at 98% of their principal value. The bonds carry an annual coupon of 11%, with interest paid twice a year.

Bond funding supports Karo construction

The financing gives Tharisa additional funding as it moves toward the next stage of development at Karo, a platinum group metals project on Zimbabwe’s Great Dyke.

Karo is expected to produce about 226,000 ounces of platinum group metals in its first phase. That would more than double Tharisa’s current PGM production, Chief Executive Officer Phoevos Pouroulis said.

The bond sale was oversubscribed, attracting institutional investors from Europe, the United Kingdom, the Middle East, North America and Asia, according to the company.

Tharisa said the interest rate reflects the risks associated with the project’s location in Zimbabwe as well as the fact that Karo remains under construction.

Karo gains key mining and sales agreements

The project received a 25-year special mining lease from the Zimbabwean government on Aug. 24, giving Tharisa a longer-term legal framework for the mine.

Karo has also signed an offtake agreement with Valterra Platinum to sell its platinum concentrate. The agreement gives the project a planned route to market as Tharisa works toward production.

Tharisa is an integrated resource company, involved in mining, processing, exploration, beneficiation, marketing, sales and logistics of platinum group metals and chrome concentrates. Its operations are mainly focused on Southern Africa.

The company has described PGMs and chrome as important materials for industries linked to energy and decarbonization.

Karo is expected to become one of Tharisa’s major PGM assets and deepen its exposure to Zimbabwe’s mining sector. The project comes as producers across the region contend with changing vehicle technologies, tighter supplies of some metals and continued demand for materials used in industrial and energy application