Platinum Group Metals production company Tharisa has closed a $130 million debt facility deal with French-based multinational financial services company, Société Générale and South African financial services firm, Absa Bank Limited.
The deal – representing part of Tharisa’s ongoing debt capital program aimed at boosting the company’s operating capital – will fund the firm’s growth strategy within South Africa’s expanding critical minerals industry.
The debt will be provided in the form of a loan ($80 million) and revolving credit facility ($50 million) – secured by commodity offtake agreements – over a 42-month period to fund Tharisa’s asset programs.
According to Michael Jones, CFO of Tharisa, “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.”
“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 $80 million over the past seven years,” Jones added.