REG - Kropz PLC - Further loan facility, update on BNP Paribas loan

KropzAnnouncement

15/12/2023 11:15

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RNS Number : 0031X  Kropz PLC  15 December 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.

 

15 December 2023

Kropz Plc

("Kropz" or the "Company")

 

Further loan facility and update on the existing BNP Paribas ("BNP") loan
facility agreement

 

Kropz Plc (AIM: KRPZ), an emerging African phosphate producer and developer,
announces Kropz Elandsfontein (Pty) Ltd ("Elandsfontein") and ARC Fund ("ARC")
have agreed to a ZAR 115 million (approximately US$ 6 million) loan facility
(the "Loan") due to the delay in arranging re-financing of the BNP loan
facility (outstanding amount US$ 15 million).

 

BNP loan facility and re-financing update

The Company previously announced on 31 July 2023 that it is in the process of
refinancing the BNP loan facility and subsequently on 3 October 2023 that BNP
had extended its waiver period to 31 December 2023. It is now expected that a
replacement loan will take longer than this to put in place and is expected to
occur in Q1 2024. The Company is currently in discussions with BNP to extend
the waiver period.

 

The Company have progressed with a preferred lender and will provide further
updates in due course.

 

The Company has capital and interest payments due on the BNP loan facility
this month and, while operations at Elandsfontein are progressing well it is
not yet at steady state capacity, the Company requires additional funding in
order to meet these in the absence of the re-financing arrangements completing
as the Company has now fully drawn down its other loans from ARC.

 

The Loan

The Loan is unsecured. Interest is payable on the Loan at the South African
prime overdraft interest rate plus 6%, nominal per annum and compounded
monthly. In the event that any amounts outstanding under the Loan, together
with interest thereon, is not repaid within 6 months from the first
utilisation date, the interest rate will be increased by an additional 2%.

 

The Loan is repayable on the earlier of a fund raising by the Company (by way
of loan or shares) or on demand from ARC, on no less than two business days'
notice. There is no fixed term.

 

The Loan will be used by Elandsfontein to fund its creditor obligations,
particularly in regards to the extended servicing of the BNP loan facility,
and other operational expenditure needs.

 

The first draw down of the Loan for an amount of ZAR 62.5 million
(approximately US$ 3 million) has also been made today.

 

Related Party Transaction

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.

 

For further information visit www.kropz.com (about:blank)  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

 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

 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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