Staff Writer 
Elton Manguwo
Staff Writer
Karo Mining House (KMH) is on the brink of securing a US$225 million in debt financing, marking a significant step towards the development of its strategic platinum project located in Zimbabwe’s Great Dyke, a top company official has revealed.
This financial backing is expected to expedite the company’s efforts in establishing a strong foothold in the platinum sector.
In a statement accompanying the financial results for the year ended September 30, 2024, company director Bernard Pryor noted that the management team is in the “final stages of securing US$225 million in funding with plans to raise another US$31,20 million through an equity partner.”The US$391 million Karo platinum project phase one is being funded through various financial modalities including from its parent company, Tharisa plc a resource group, which is dually listed in London and Johannesburg.
As at the reporting date US$107million had been received from Tharisa plc for utilisation on the ongoing construction work.
“Tharisa plc has been following through on its commitment to fund the first US$135million of the project budget through equity and equity type instruments and also to provide various parent company guarantees in order for the Group to secure the additional debt,” said Pryor.
In the current financial year, the US$65 million equity line that had been availed by Karo Mining Holdings in prior year, was fully utilised for the project and a further US$70million equity line was availed and is being drawn down to fund project working capital needs as they fall due.
“The directors have and will continue to review the spending, investment and commitments in the project; and have prepared scenarios to match the project commitments and funding availability should it be required to maintain available funds for the foreseeable future,” said Pryor.
The mining firm indicated that negotiations for funding have been positive and now at an advanced stage with the group in possession of term sheets received from financiers which it is currently assessing whilst smaller work packages on the project are being completed.
During the reporting period, the development of the Karo Platinum Project faced delays primarily due to funding challenges linked to prevailing conditions in the platinum group metals (PGM) market.
“These market fluctuations impacted the pace of workstreams, resulting in a slowdown of project activities and we are actively addressing these challenges, focusing on securing the necessary financing to regain momentum and advance the project’s development in line with strategic timelines,” said Pryor.
The company’s First ore in mill (“FOIM”) is now planned for the second half of 2026 whilst the project workstreams have been divided into smaller commitments to ensure continued development aligned with funding availability. newsdesk@fingaz.co.zw
