Tharisa PLC acquired a 90% interest in Zimbabwe-focused chrome concentrates producer Salene Chrome Zimbabwe Pvt. Ltd. from Leto Settlement Trust.
Leto, which is the beneficial shareholder in material Tharisa shareholder Medway Developments Ltd., will retain a 10% free carried shareholding in Salene and will receive a 3% royalty on gross proceeds from chrome concentrates sales.
Tharisa said May 16 that Salene secured three special two-year grants enabling it to mine minerals including illuvial chrome on approximately 9,500 hectares on the eastern side of Zimbabwe's Great Dyke. The Great Dyke is a layered mafic intrusion that hosts platinum group metals and high-grade chrome deposits.
Salene plans to apply to consolidate the special grant areas into a mining lease area and is also applying to the Zimbabwean government for national project status and for the special grant areas to be contained within a proposed special economic zone.
Upon receiving environmental permits, Salene will undertake trenching and sampling to define the extent and in situ grade of chrome mineralization, with US$3.2 million budgeted over 12 months.
Subject to geological testing, the company will then construct a pilot plant to treat illuvial chrome deposits in a bid to optimize the plant design.
In August 2017, Tharisa entered into a five-year agreement to supply at least 240,000 tonnes per annum of metallurgical-grade chrome concentrate at market prices to Shanxi Taigang Wanbang Furnace Charge Co. Ltd.