Victoria Falls Stock Exchange-listed emerging platinum group metals (PGM) producer Karo Mining Holdings has called upon its bondholders to approve three critical amendments to its existing bond terms, seeking an extension of the debt tenure, an increased coupon rate, and modifications to early redemption conditions, Mining Zimbabwe can report.
By Rudairo Mapuranga
In a circular to bondholders dated 16 October 2025, the company announced an Extraordinary General Meeting scheduled for 07 November 2025, where investors will decide on the proposed changes to the US$36.8 million bond initially issued in 2022.
The company is seeking to extend the bond’s maturity date by three years to 01 December 2028, aligning the debt repayment schedule with the extended development timeline of its Karo Platinum Project, located on the Great Dyke.
In recognition of the longer investment horizon and increased cost of funding in the country, Karo has proposed raising the annual interest rate on the notes to 11.0 per cent, up from the current 9.5 per cent. This adjustment is designed to compensate bondholders for the extended tenure of their investment.
The third significant amendment involves revising the “make-whole” provision governing early redemption. If approved, the company would only be required to repay the principal amount plus accrued interest up to the redemption date, rather than the full interest that would have been earned had the bond reached its original maturity.
The project’s major shareholder and guarantor, Tharisa plc, has committed to extending its financial backing for the new three-year period, subject to an annual guarantee fee of 2.6 per cent, effective from December 2025.
In a development that significantly boosts the proposal’s prospects, Arxo Finance plc, an associate of the issuer holding 27 per cent of the bond issue valued at US$10.0 million, has formally undertaken to vote in favour of the resolutions.
The virtual meeting, to be conducted electronically, will require bondholders to return completed proxy forms by 05 November 2025 if they are unable to attend the proceedings. The proposed changes reflect Karo’s strategic approach to aligning its financial obligations with the long-term development requirements of what is considered a tier-one PGM asset.
Approval of these amendments would provide the emerging miner with crucial financial flexibility as it advances the development of its mining operations in Mhondoro-Ngezi, situated approximately 80 kilometres southwest of Harare.
