South Africa's integrated exploration resource group, Tharisa Mine has acquired 100% shareholding in Zimbabwe's Salene Chrome, in a transaction valued at US$3 million.
In a statement Wednesday, Tharisa confirmed the deal, which includes shareholding in Salene Chrome East and Salene Chrome West concessions in the Great Dyke.
"The transaction is in line with Tharisa's growth strategy, including geographic diversification, operating low cost and open pit operations with access to a premium chrome product, replicating the Tharisa model in a different jurisdiction, and maximising the group's value at a low entry cost, a short development time-line and limited capital requirements," the company said.
The Great Dyke 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 allowing for the mining of various minerals and subsequently applied for, and was granted a number of licenses to the western side of the dyke.
The eastern mine covers 11 900 hectares and Salene Chrome West covers 12 400 hectares to the west of the Great Dyke.
"The special grants have been renewed for an additional two years with effect from 25 February 2021. A special grant is issued in terms of the Zimbabwe Mines and Minerals Act and authorises the holder thereof to carry out mining operations for a specified mineral for a period of 24 months," Tharisa said.
The Salene Chrome project is located in a Special Economic Zone, which permits the import and 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.
Tharisa incurred an amount of US$2 million on the initial exploration programme and based on the results of the exploration and metallurgical test work, an internal discounted cash flow model produced a net present value for the eastern mine at US$ 6.9 million premised on a life of open pit of seven years.