Platinum group metals company Tharisa has reached an agreement with Leto Settlement to restructure its previously announced acquisition of a 90% stake in Salene Chrome Zimbabwe.
In May this year, Tharisa signed the deal for the acquisition.
Under the amended terms of the transaction, the company will be granted a call option to buy the 90% shareholding in Salene, depending on the outcome of an initial $3.2m exploration programme.
Tharisa will fund this programme to be carried out over the special grant areas held by Salene.
In a statement, Tharisa said: “The amended structure should provide Tharisa with certainty on the extent of the mineralisation and the necessary techno-economic information on which to base an investment decision whilst retaining the economic benefits of the transaction.”
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Through the transaction, the company intends to geographically diversify its asset base and operate low cost and open pit operations with access to a higher grade chrome product.
If the company chooses to exercise the option, its subsidiary Arxo Resources will have exclusive offtake and marketing rights for the chrome concentrates produced from the Salene project.
The proposed exploration programme will include trenching and/or pitting operations to determine the extent of the mineralisation and the need for sampling.
This will enable Tharisa to confirm and delineate the illuvial chrome ore body and the in situ grade of the chrome content.
Depending on the results of the economic feasibility, the exploration work is expected to pave the way for accelerating production.
Salene secured three special grants from the Zimbabwe government covering an area of around 9,500ha on the eastern side of the Great Dyke in Zimbabwe.
The special grants give Salene rights to mine chrome in the areas within the Great Dyke region, which is known to contain illuvial chrome concentrations of up to 30% Cr2O3 at surface.