Zimbabwe’s emerging platinum group metals (PGM) development project, Karo Platinum, is preparing to issue a new bond on the Victoria Falls Stock Exchange (VFEX) as it pushes ahead with the next phase of project development, Mining Zimbabwe can report.
By Rudairo Mapuranga
Speaking to representatives from leading banks and financial institutions who visited the Karo site in Mhondoro-Ngezi on Tuesday, the company’s Country Director, Dr. Joe Zimba, confirmed that preparations for a follow-up bond are underway.
Following the successful issuance and listing of its first bond in 2022, which raised US$36.8 million, Karo is now engaging investors in preparation for an expanded bond offering. While the exact amount of the upcoming bond was not disclosed, Zimba made it clear that the company is open to over-subscriptions and is finalising key terms.
“We’re scheduling one-on-one meetings with interested parties starting next week,” said Dr. Zimba. “That’s when we’ll bring in our finance director to walk through the bond structure—tenure, coupon, and other technical details. The objective is to ensure everyone has the clarity they need ahead of participation.”
The new bond will include amendments to the current structure, including a revised coupon rate to reflect market conditions. An Extraordinary General Meeting (EGM) of current bondholders is being scheduled to approve the changes, which will also include extending the bond’s tenure.
Dr. Zimba emphasised that the existing bond, due to mature in December 2025, was never pegged to mine production timelines but was instead backed by guarantees independent of output. He, however, acknowledged that while the company had hoped to reach production earlier, global PGM price volatility had impacted project timing.
“We are not yet in production, but the bond was never dependent on that milestone. What matters is that the guarantees remain intact, and our commitment to deliver the project has never wavered,” said Dr. Zimba.
The Karo project has already absorbed more than US$160 million in expenditure, with visible infrastructure such as bulk earthworks, power lines, and road access taking shape on site. According to the company, this new round of fundraising will take the development several steps closer to production.
The site visit by financial institutions marked an important step in the engagement process. Dr. Zimba and his team, including project and finance officers, fielded questions from potential investors eager to understand the bond’s structure, use of proceeds, and current progress on the ground.
Karo officials were also transparent about the next steps. A revised prospectus will soon be issued, following board resolutions and updated documentation, before the bond is relisted on the VFEX. Dr. Zimba said a strong appetite from both existing and prospective bondholders had already been recorded, with several financial institutions signalling interest in participation.
While the company is also pursuing a separate project finance package, expected to materialise in the third quarter of 2025, the bond remains a crucial part of the capital-raising mix. It provides local investors with a rare opportunity to participate in one of Zimbabwe’s most significant mining ventures.
“What we are building here is not just a mine,” said Dr. Zimba. “It is an industrial operation that will transform Zimbabwe’s platinum industry and contribute significantly to the national economy.”
Karo Platinum is a project under Karo Mining Holdings, which is owned by Tharisa Plc. Its long-term vision aligns with Zimbabwe’s economic development strategy and is expected to contribute to employment creation, infrastructure development, and forex generation.
As Zimbabwe continues to position the Victoria Falls Stock Exchange as a preferred capital-raising platform for resource-backed investments, the Karo bond stands out as a defining example of public-private collaboration. Karo’s decision to issue a second bond not only signals investor confidence but also reinforces the company’s intent to stay the course and deliver a world-class PGM operation.
With the bond process now in motion and project finance discussions progressing, all eyes are on Karo’s ability to execute. And judging by the reception from the financial community this week, confidence in the project is growing.
