Tharisa Plc has now acquired full control of Salene Chrome Zimbabwe from Leto Settlement for USD3.0 million.
Salene Chrome is a development stage, low cost, open pit asset, located in the Great Dyke in Zimbabwe. The acquisition provides geographic diversification with access to a premium chrome product, a short development timeline and a low capital requirement.
The acquisition follows another transaction in 2018 where the group took its holding in the chrome mine to 90%.
Under the agreement, Tharisa will now fund and undertake an initial exploration programme up to USD3.2 million Arxo Resources Limited , a wholly owned trading subsidiary of Tharisa, to be the sole offtaker/marketing agent for the chrome concentrates produced, thereby leveraging existing platforms across borders and increasing chrome sector market share.
Leto will retain a 10% free carried shareholding in Salene Chrome and will be entitled to a 3% commission on the Cost, Insurance and Freight (CIF) sales value of the
chrome concentrates and any other commodities sold.
The Great Dyke of Zimbabwe contains the world’s largest known platinum group metals and high-grade chrome deposits outside of South Africa.
Salene Chrome was awarded a number of special grants in May 2018 on the eastern side of the Great Dyke of Zimbabwe allowing for the mining of various minerals.
It subsequently also applied for, and was granted, a number of licenses to the western side of the Great Dyke. Salene Chrome East covers 11 900 ha adjacent to the Great Dyke in Zimbabwe and Salene Chrome West covers 12 400 ha to the west of the Great Dyke.
The Salene Chrome project is located in a Special Economic Zone, which permits the import/export of capital without any trade barriers. Benefits beyond the expatriation of capital include a reduced tax rate, duty-free importation of raw materials and exchange control facilities.