REG - Kropz PLC - Elandsfontein bridge loan facility

KropzAnnouncement

30/09/2022 14:00

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RNS Number : 3959B  Kropz PLC  30 September 2022

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

30 September 2022

Kropz Plc

("Kropz" or the "Company")

 

Elandsfontein bridge loan facility

 

Kropz Plc (AIM: KRPZ), an emerging African phosphate producer and developer,
reports that as a result of the delays in the ramp-up of operations at Kropz
Elandsfontein (Pty) Ltd ("Elandsfontein") that were announced 9 August 2022,
there is an immediate funding requirement of ZAR 60.5 million (approximately
US$3.4 million) for Elandsfontein.

 

Kropz, Elandsfontein and ARC have agreed to a further ZAR 126 million
(approximately US$ 7 million) bridge loan facility (the "September Loan") to
meet immediate cash requirements at Elandsfontein to the end of October 2022.
Kropz will draw down ZAR 60.5 million (approximately US$ 3.4 million) of the
September Loan on 5 October 2022.

 

The September Loan is in addition to the ZAR 121.5 million (approximately US$
7.3 million) bridge loan facility Kropz, Elandsfontein and ARC entered into to
meet immediate cash requirements at Elandsfontein to the end of August 2022
(the "August Loan") (announced on 9 August 2022).

 

As announced 9 August 2022, Kropz and the ARC Fund are currently working on a
comprehensive funding structure to encompass the August Loan and the September
Loan and any further working capital requirements for Elandsfontein and for
Kropz.

 

The September Loan is unsecured, repayable on demand, and there are no fixed
repayment terms. It is repayable by Elandsfontein on no less than two business
days' notice. Interest is payable on the September Loan at the South African
prime overdraft interest rate plus 6%, nominal per annum and compounded
monthly.

 

The September Loan is a related party transaction pursuant to Rule 13 of the
AIM Rules for Companies. Gerrit Duminy, a director of the Company, is the
representative of ARC. Mike Nunn, a director of the Company, is the beneficial
owner of Kropz International SARL ("Kropz International"). ARC and Kropz
International are treated as acting in concert for the purposes of the City
Code on Takeovers and Mergers. Accordingly, neither has been involved in the
approval of the September Loan by the Company's board. The directors of the
Company, who are considered independent for the purposes of the September
Loan, having consulted with the Company's nominated adviser, consider the
terms of the September Loan to be fair and reasonable insofar as the Company's
shareholders are concerned.

 

The Company will provide further updates in due course.

 

For further information visit www.kropz.com (http://www.kropz.com/)  or
contact:

 

 Kropz Plc                         Via Tavistock
 Mark Summers (CEO)                +44 (0) 207 920 3150

 Grant Thornton UK LLP             Nominated Adviser
 Samantha Harrison                 +44 (0) 20 7383 5100

 Harrison Clarke

 George Grainger

 Ciara Donnelly

 Hannam & Partners                 Broker
 Andrew Chubb                       +44 (0) 20 7907 8500

 Ernest Bell

 Tavistock                         Financial PR & IR (UK)
 Emily Moss                        +44 (0) 207 920 3150

 Nick Elwes                        kropz@tavistock.co.uk

 Adam Baynes

 R&A Strategic Communications      PR (South Africa)
 Charmane Russell                  +27 (0) 11 880 3924

                                   charmane@rasc.co.za

 

About Kropz Plc

Kropz is an emerging African phosphate producer and developer with phosphate
projects in South Africa and the Republic of Congo. The vision of the Group is
to become a leading independent phosphate rock producer and to develop into an
integrated, mine-to-market plant nutrient company focusing on sub-Saharan
Africa.

-ENDS-

 

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