THARISA, a chrome and platinum group metal (PGM) producer, has signalled its intention to embark on geographic diversification after it today announced it had exercised an option to take ownership of Salene Chrome, a business situated in Zimbabwe.
“The acquisition provides geographic diversification with access to a premium chrome product, a short development timeline, and a low capital requirement,” it said. An option to build on Tharisa’s initial foothold was exercised at a cost of $3m.
Once a sale and purchase agreement has been exercised with the vendor, Leto Settlement Trust, Tharisa will undertake an initial exploration programme costing up to $3.2m. The trust will retain a free-carried 10% stake in Salene Chrome Zimbabwe, Tharisa said.
Leto Settlement Trust will also be entitled to a 3% commission on the sales value of the chrome concentrates and any other commodities sold from Salene Chrome. The metals will be exclusively marketed by Tharisa subsidiary, Arxo Resources.
Salene Chrome was granted access to mineral-bearing tenements east and west of Zimbabwe’s Great Dyke which is also host to the country’s vast PGM resources. All in all, Salene Chrome has special grants to just over 24,000 hectares of property. The special grants have been renewed for an additional two years from February 25, 2021.
Tharisa also has options over 90 million oz of PGM resources previously owned by the Impala Platinum-controlled company, Zimplats in Zimbabwe’s Selous PGM-bearing region. This is held through a 26.8% stake in Karo Platinum.