Tharisa (LSE:THS) has agreed a binding term sheet with Valterra to purchase platinum group metals (PGM) concentrate from the Karo Platinum project in Zimbabwe.
The contract runs for an initial five years on customary offtake terms used across the PGM industry.
Karo Platinum is 85% owned by Karo Mining Holdings, in which Tharisa holds a 78.81% stake, with the Government of Zimbabwe holding the remaining 15% through Generation Minerals on an unencumbered free carry. The project sits on the Great Dyke and ranks among the largest undeveloped PGM assets there, with an open-pit mineral reserve of 2.1 million ounces on a 4E basis and a mineral resource of 11.2 million ounces.
Including potential underground mining, Karo Platinum supports a mine life of more than 50 years.
The agreement follows Karo Platinum's recent Special Mining Lease with the Zimbabwean government, which secured tenure and fiscal certainty for the project.
"This agreement underpins the bankability of Karo, reflects the quality of the asset and reinforces the partnership-led approach that has been central to Tharisa's development since inception," said Phoevos Pouroulis, chief executive of Tharisa.
Valterra's chief executive, Craig Miller, said the deal reflects confidence in PGM market fundamentals and adds to Valterra's third-party processing portfolio.
Karo Platinum now moves forward with offtake secured, alongside its mining lease, as it advances toward first production.
News Intelligence what this means for the company
Tharisa has locked in a five-year offtake agreement with Valterra for PGM concentrate from its Karo Platinum project in Zimbabwe, removing a critical pre-production risk as the asset advances toward first production. This follows the project's Special Mining Lease grant three days earlier, meaning Karo now has both tenure security and buyer commitment—two of the three pillars typically required for project bankability and financing.
The offtake deal materially de-risks Karo's path to production by eliminating buyer uncertainty for a project that Tharisa has invested more than $240m in to date. However, the company's net cash position of $10.7 million as of Q3 FY2026 means execution risk on capex and working capital remains material; offtake certainty alone does not fund construction.
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