REG - Kropz PLC - Further loan facility

KropzAnnouncement

27/03/2024 07:00

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RNS Number : 4844I  Kropz PLC  27 March 2024

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.

 

27 March 2024

Kropz Plc

("Kropz" or the "Company")

 

Further loan facility

 

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 170 million (approximately US$ 9 million) loan facility
(the "Loan").

 

Refinancing update

 

The Company continues discussions with potential lenders regarding a
replacement loan for the BNP loan facility (outstanding amount US$ 11.25
million). This is currently expected be completed by second quarter of 2024.
The Company previously announced on 21 December 2023 that BNP had extended its
waiver period to 31 March 2024. The Company has commenced discussions with BNP
to further extend the waiver period and will provide updates in due course.

 

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 the cashflow and operational
expenditure needs.

 

 

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

 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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