Tharisa Secures $130M for South African Mining Operations
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Large quarry dump truck. Big yellow mining truck at work site. Loading coal into body truck. Production useful minerals. Mining truck mining machinery to transport coal from open-pit production
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.
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