REG - Kropz PLC - Trading Update and further loan facility

KropzAnnouncement

11/07/2024 07:00

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RNS Number : 9482V  Kropz PLC  11 July 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.

 

11 July 2024

Kropz Plc

("Kropz" or the "Company")

 

Trading Update and further loan facility

 

Kropz Plc (AIM: KRPZ), an emerging African phosphate producer and developer,
announces its trading update for Q2 2024 and agreement of a further loan
facility between Kropz Elandsfontein (Pty) Ltd ("Elandsfontein") and ARC Fund
("ARC") for ZAR 140 million (approximately US$ 8 million) (the "Loan").

 

Trading Update

 

Elandsfontein achieved production of 88,319 tonnes of phosphate concentrate
and sales of 71,948 tonnes of phosphate concentrate during Q2 2024. This
brings production to 162,308 and sales to 152,685 tonnes for H1 2024.

 

Refinancing update

 

The Company continues discussions with potential lenders for additional
working capital and a replacement loan for the BNP loan facility (outstanding
amount US$ 3.75 million) and now anticipates this to be concluded in H2 2024.

 

The Company previously announced on 3 April 2024 that BNP had extended its
waiver period to 30 June 2024. BNP have now also extended the waiver to 30
September 2024.

 

The Loan

 

Due to the refinancing discussions continuing into Q3 2024, the Company
requires additional capital to meet its repayment schedule with BNP and for
additional operational expenditure.

 

Consequently, Elandsfontein and ARC have agreed terms for a further loan of
ZAR 140 million (approximately US$ 8 million). 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 first draw down on the Loan for an amount of ZAR 80 million has been
made.

 

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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