REG - Kropz PLC - Trading Update and Loan Facility

KropzAnnouncement

14/07/2025 17:15

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RNS Number : 9966Q  Kropz PLC  14 July 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.

 

14 July 2025

Kropz Plc

("Kropz" or the "Company")

 

Trading Update, Loan Facility and

Related Party Transaction

 

Kropz Plc (AIM: KRPZ), an emerging African phosphate producer and developer,
announces a trading update for the period to 30 June 2025 and that Kropz
Elandsfontein (Pty) Ltd ("Elandsfontein") and ARC Fund ("ARC") (together the
"Parties") have agreed to a ZAR 200 million (approximately US$ 11.4 million)
(the "Loan"), which constitutes a related party transaction.

 

 

Trading Update

 

Elandsfontein produced 74,717 tonnes of phosphate concentrate during Q2 2025
and had sales of 56,300 tonnes of phosphate concentrate over the same period.

 

The mine remains in its trial production phase and the Company continues to
encounter some challenges during its progression to full production. As noted
in the Company's announcement on 21 May 2025, the Company is undergoing a
number of projects to address these challenges, which has resulted in ongoing
capital expenditure requirements at Elandsfontein. This has resulted in a
further funding requirement of ZAR 200 million (approximately US$ 11.4
million).

 

 

The Loan

 

Elandsfontein and ARC have agreed terms for a loan facility of ZAR 200 million
(approximately US$ 11.4 million). 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.

 

As announced on 21 May 2025 and 28 May 2025, Kropz SA (Pty) Ltd has issued a
Guarantee, Security Cession and Pledge in favour of ARC, and Kropz Plc has
issued a Limited Indemnity, Security Cession and Pledge in favour of ARC for
all current and future loan facilities made to Elandsfontein, which are
applicable to the Loan.

 

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

 

The Company will update the market on drawdown of the loan in due course.

 

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. Accordingly, Gerrit Duminy has not 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

 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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