Tharisa PLC (LSE:THS, JSE:THA, OTC:TIHRF) has secured a US$130mln debt facility with Société Générale and Absa Bank Limited.
The facility has a 42-month tenure and comprises a term loan of US$80mln and a revolving US$50 mln facility.
It is secured by commodity offtake agreements relating to the company’s ongoing chrome and platinum mining operations in South Africa, and remains subject to conditions precedent.
This capital raise follows the successful issue of a three-year US$32mln bond listed on the Victoria Falls Stock Exchange on 16 December 2022.
"The Société Générale and Absa senior debt facilities, as well as the significant free cash flow generated from the Tharisa Mine, provide significant flexibility to Tharisa's capital allocation policy,” said Michael Jones, CFO of Tharisa.
“This debt raise forms part of our strict approach to capital allocation and combines ongoing investment in our producing mining operations and our growth projects, whilst maintaining our commitment to delivering a sustainable dividend to our shareholders, which has exceeded US$80mln over the past seven years."
As at 31 December 2022, Tharisa had a cash balance of US$213.9mln and debt of US$112.8mln.