REG - Kropz PLC - Elandsfontein update and further bridge loan

KropzAnnouncement

14/03/2023 08:00

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RNS Number : 8800S  Kropz PLC  14 March 2023

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.

 

14 March 2023

 

Kropz Plc

("Kropz" or the "Company")

 

Elandsfontein phosphate project sales update and further bridge loan
facilities

 

Kropz Plc (AIM: KRPZ), an emerging African phosphate producer and developer,
is pleased to announce a further sale of 20,000 tonnes of phosphate
concentrate from Kropz Elandsfontein (Pty) Ltd ("Elandsfontein"). As with the
first bulk sale recorded in January 2023, concentrate production is still not
yet at optimal quality, thus it is still being sold at a discount to current
market prices.  Plant modifications and adjustments to processing parameters
have resulted in significant improvements in daily throughput and quality but
further optimisation is required.  A shortage of fatty acid, a flotation
reagent, is also being experienced due to unexpected shipping delays from the
USA which is resulting in lower mass recovery in the direct flotation
circuits. A locally sourced alternative product is being trialled while
various shipping options have been implemented with the USA supplier. This
delay in Kropz' ability to consistently achieve bulk sale revenues at market
price has resulted in an immediate funding requirement of ZAR 25 million
(approximately US$ 1.4 million) for Elandsfontein.

 

Consequently, Kropz, Elandsfontein and ARC Fund ("ARC") have agreed to
ZAR 285 million (approximately US$ 15.5 million) bridge loan facilities (the
"Loan") to meet the immediate and additional near term funding requirements at
Elandsfontein as it progresses commercial sales. Kropz will draw down ZAR 25
million (approximately US$ 1.4 million) of the Loan on 14 March 2023.

 

The 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 Loan at the South African prime overdraft
interest rate plus 6%, nominal per annum and compounded monthly.

 

The 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
Loan by the Company's board. The directors of the Company, who are considered
independent for the purposes of the Loan, having consulted with the Company's
nominated adviser, consider the terms of the 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 (about%3Ablank)  or contact:

 Kropz Plc                         Via Tavistock
 Louis Loubser (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)
 Nick Elwes                        +44 (0) 207 920 3150

 Jos Simson                        kropz@tavistock.co.uk

 Emily Moss

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

 Marion Brower                     charmane@rasc.co.za

                                   marion@rasc.co.za

 

About Kropz Plc

Kropz is an emerging African phosphate producer and developer with projects in
South Africa and in 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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