Tharisa soars as mine project passes completion test

Shares in South African platinum miner Tharisa soared almost 20% on news it has successfully undertaken the mine project completion test regarding a ZAR1bn a senior-debt finance facility.

As a result, the facility's interest rate would fall from JIBAR plus 490 basis points (bps) a year to JIBAR plus 340 bps a year, said Tharisa.

"In addition, the guarantee provided by the holding company to its subsidiary will lapse," the company added in a statement.

Tharisa said the achievement of this milestone proved its business model to economically mine at the required run rate of at least 400 ktpm.

It also proved the technical ability of the plants to process this material at the nameplate capacity of 400 ktpm and to produce in specification PGM and chrome concentrates.

The facility, raised to fund the expansion of Tharisa Minerals' mining footprint and for the construction of the Voyager Plant, was raised in February 2012 and was utilised in full.

At 30 September, the balance outstanding on the facility was ZAR502.2m, with a final scheduled repayment date of 31 March, 2019.

The group holds cash of ZAR135.3m as a debt-service reserve account, resulting in a net amount of ZAR366.9m owing on the facility at 30 September.

At about 15:42 GMT, shares in Tharisa were up 17.44% to 165p each.