REG - Kropz PLC - Loan Facility

KropzAnnouncement

14/09/2023 11:45

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RNS Number : 4858M  Kropz PLC  14 September 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 September 2023

Kropz Plc

("Kropz" or the "Company")

 

Elandsfontein phosphate operational update, 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 The ARC Fund
("ARC") have agreed to a ZAR 250 million (approximately US$ 13.2 million)
loan facility (the "Loan") to meet the immediate and additional near-term
funding requirements at Elandsfontein as it progresses commercial sales and to
meet Elandsfontein's interest and capital payment obligations to BNP Paribas
SA.

 

 

While several sales have been recorded in 2023, including a further 63,000
tonnes in the current quarter, they are below forecast, due to mine production
having been affected by recent unprecedented seasonal rains.

 

BNP loan facility agreement update

 

The Company previously announced on 31 July 2023 that it is in the process of
refinancing the BNP loan facility (outstanding amount US$ 18,750,000) and that
a replacement loan was expected to be in place in the third quarter of 2023,
before expiry of the facility. It is now expected that a replacement loan will
be in place by the end of 2023 and the Company is in discussion with BNP to
extend its waiver period in line with this timetable.

 

The Company will provide further updates in due course.

 

The Loan

 

The Loan will be used to fund Elandsfontein's capital expenditure to increase
operational capacity and assist in meeting its creditor obligations,
particularly with regard to the extended servicing of the BNP loan facility,
and operational expenditure needs.

 

The Loan is unsecured, repayable on demand, and there are no fixed repayment
terms. It is repayable by Elandsfontein on terms of no fewer 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. 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 with an additional 2%.

 

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

 Adam Baynes

 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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