Tharisa PLC (LON:THS) has acquired a stake in Karo Mining Holdings Limited, a company with interests in both platinum and coal mining in Zimbabwe.
The miner said it had acquired a 26.8% stake in Karo for a total cash consideration of US$4.5mln following an investment agreement between Karo and the government of Zimbabwe in March to establish a platinum group metals (PGMs) mine, concentrators, smelters, a base metal and precious metals refinery, as well as power generation capacity for the operations with surplus energy capacity made available to the Zimbabwe power grid.
Tharisa added that the acquisition provided it with access to an area in the Great Dyke of Zimbabwe covering 23,903 hectares and estimated to contain a PGM resources of around 96 Moz (on a 4E basis).
The group said it had also provided Karo with an US$8mln repayable debt facility to finance initial geological exploration and sampling work in the License Area to determine a compliant mineral resource which would enhance the value of the investment.
Tharisa made its first move into Zimbabwe in May when it acquired a 90% stake in Salene Chrome, a company which holds three grants over around 9,500 hectares of land in the Great Dyke.