THARISA has restructured its planned investment in Salene Chrome Zimbabwe, a prospective chrome deposit, agreeing with shareholder, Leto Settlement, to grant Tharisa a call option to buy a 90% stake in the prospect.
The effect of the restructure will be to allow Tharisa to first conduct the agreed £3.2m in exploration work on the prospect before electing to make the investment. Tharisa said on August 23 that it was seeking to restructure an agreement struck in May.
The other elements of the May agreement are unchanged. Leto Settlement will retain a 10% stake in Salene Chrome and a 3% royalty on production whilst Tharisa’s processing company, Arxo Resources, will have the sole off-take agreement.
“The amended structure should provide Tharisa with certainty on the extent of the mineralisation and the necessary techno-economic information on which to base an investment decision whilst retaining the economic benefits of the transaction,” said Tharisa in a statement today.
The transaction was in line with the firm’s strategy of increasing its geographic diversification, operating low cost and open pit operations with access to a higher grade chrome product, and replicating the Tharisa model in a different jurisdiction, it said.
