Karo Mining raises US$3.8m in note offering
KARO Mining Holdings (KMH), a Zimbabwe platinum group metals (PGMs) miner, has raised US$31.8 million via private placement of fixed income notes, exceeding the minimum requirement of US$25 million.
KMH received applications to subscribe for private placement of the fixed income notes as well as being advised of credit committee approval, subject to completing administrative processes and confirmation of listing by way of introduction on the Victoria Falls Stock Exchange (VFEX).
“The 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 in the Republic of Zimbabwe,” said the company in a statement.
The mining company said interest on the issued notes would accrue from the date of issue. The issued notes would be listed on the VFEX on 16 December 2022 and, where issued subsequent to this date, on the business day following issue.
“As such, applications have been granted in full and the notes will be issued 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,” said the company.
Karo Mining Holdings plc is a subsidiary of Tharisa, the PGMs and chrome co-producer which is dually listed on the Johannesburg and London stock exchanges.
Tharisa confirmed in October that it was joining the foreign exchange bourse through listing its subsidiary Karo Mining Holdings in December this year.
KMH would be the third mining company listed on VFEX. The company chief executive officer, Phoevos Pouroulis, said this interest stemmed from Tharisa’s firm record of accomplishment in developing projects on time and on budget as well as the outstanding fundamentals of Karo Platinum Project.
The US$4.2 billion Karo Mining Project in Mhondoro commenced operations last week with the first ore expected in the processing mill by July 2024.
Zimbabwe has the world’s second-largest known Platinum deposits after South Africa, KMH would be the third active PGMs producers along Zimplats, Mimosa Mining Company and Unik Mine.