REG - Kropz PLC - Trading Update and Loan Facility

KropzAnnouncement

21/05/2025 17:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250521:nRSU6617Ja&default-theme=true

RNS Number : 6617J  Kropz PLC  21 May 2025

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.

 

21 May 2025

Kropz Plc

("Kropz" or the "Company")

 

Trading Update, Loan Facility,

Related Party Transaction & Legal Claim Update

 

Kropz Plc (AIM: KRPZ), an emerging African phosphate producer and developer,
announces a trading update for the period to 31 March 2025 and that Kropz
Elandsfontein (Pty) Ltd ("Elandsfontein") and ARC Fund ("ARC") (together the
"Parties") have agreed to a ZAR 130 million (approximately US$ 6.7 million)
loan facility (the "Loan"), which constitutes a related party transaction. The
Company also announces agreement of a legal stay on the claim which Kropz and
its subsidiary company, Cominco Resources Limited ("Cominco"), are defendants
(the "Claim").

 

 

Trading Update

 

Elandsfontein produced 77,318 tonnes of phosphate concentrate during Q1 2025
and had sales of 88,554 tonnes of phosphate concentrate over the same period.
This included a record production month of 33,000 tonnes of phosphate
concentrate in January 2025.

 

However, the mine is still in its trial production phase and the Company has
encountered some challenges during its progression to full production.
Elandsfontein produced 28,000 tonnes of phosphate concentrate during April
2025 with no sales in the month due to one sale being delayed due to the
receiving vessel arriving at the port in early May 2025. As noted in the
Company's announcement on 26 February 2025, the Company is undergoing a number
of projects to address these challenges, which has resulted in an increase in
capital expenditure requirements at Elandsfontein. This has resulted in a
further funding requirement of ZAR 130 million (approximately US$ 6.7
million).

 

The Loan

 

Elandsfontein and ARC have agreed pending formal execution terms for a loan
facility of ZAR 130 million (approximately US$ 6.7 million) where 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 repayable on the
earlier of a date as agreed between the Parties or on demand from ARC, on no
less than 15 business days' notice. There is no fixed term.

 

Associated with the Loan, a Guarantee, Security Cession and Pledge by Kropz
SA (Pty) Ltd was issued in favour of ARC and pending formal execution a
Limited Indemnity, Security Cession and Pledge by Kropz Plc will be issued in
favour of ARC for all current and future loan facilities made to
Elandsfontein.

 

The Loan will be used by Elandsfontein to fund its cashflow and operational
expenditure needs.

 

Of the Loan facility, ZAR 50 million was drawn down on 25 April 2025 ("Tranche
1") and ZAR 30 million was drawn down on 9 May 2025 ("Tranche 2").

 

Related Party Transaction

 

The Loan, Tranche 1 and Tranche 2 (the "Transactions") are related party
transactions pursuant to Rule 13 of the AIM Rules for Companies. Gerrit
Duminy, a director of the Company, is the representative of ARC and has not
been involved in the approval of the Transactions by the Company's board. The
directors of the Company, who are considered independent for the purposes of
the Transactions, having consulted with the Company's nominated adviser,
consider the terms of the Transactions at the time they were entered to be
fair and reasonable insofar as the Company's shareholders are concerned.

 

Legal Claim Update

 

On 26 February 2025, Kropz announced that Teh Hong Eng Investments Holding
Limited ("THE") and Meridian Investment Group PTE. Limited ("Meridian") had
served Particulars of Claim in litigation in the English High Court to which
Kropz and its subsidiary company, Cominco, are defendants. The litigation
relates to an alleged breach of THE's right of first refusal to acquire
Cominco shares at the time of Kropz's offer to Cominco's shareholders in
November 2018 which resulted in the acquisition by Kropz of the entire issued
and to be issued share capital of Cominco, including the acceptance of the
offer by THE and Meridian as shareholders of Cominco.

 

Kropz has agreed a legal stay with THE and Meridian in respect of the
litigation. The legal stay expires in July 2025.

 

Further updates will be made if necessary in due course.

 

 

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

 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-

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDUAVVRVSUVUAR