Kropz PLC Elandsfontein Update and Bridge Loan Facility (4395J)
27 Avril 2022 - 8:00AM
UK Regulatory
TIDMKRPZ
RNS Number : 4395J
Kropz PLC
27 April 2022
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 April 2022
Kropz Plc
("Kropz" or the "Company")
Elandsfontein Phosphate Project Update and Bridge Loan
Facility
Kropz Plc (AIM: KRPZ), an emerging African phosphate producer
and developer, reports that due to slower than expected progress in
the ramp up of operations at Kropz Elandsfontein (Pty) Ltd ( "
Elandsfontein ") , production of sufficient phosphate rock
concentrate for the first bulk sale will be achieved later in Q2
than originally expected. The delay has largely been driven by the
need to re-engineer parts of the fine flotation circuit as proposed
by the vendor, but has also been caused by early unpredicted ore
variability and lack of operator experience.
This delay will result in a funding requirement of ZAR58 million
at the end of April 2022 for Kropz Elandsfontein.
In order to cover part of this funding requirement, Kropz will
draw down, on 26 April 2022, the remaining ZAR33 million
(approximately US$2.11 million) conditional convertible equity
facility of up to ZAR 200 million ("ZAR Equity Facility"), with its
major shareholder, the ARC Fund ("ARC"), as announced on 29
September 2021. This will be the final drawdown of the ZAR Equity
Facility.
Kropz and ARC have also agreed to a further ZAR25 million
(approximately US$1.60 million) bridge loan facility (the "Loan")
to meet immediate cash requirements at Elandsfontein at the end of
April 2022.
The Loan is repayable on demand, and there are no fixed
repayment terms. It is repayable by Kropz on no less than two
business days' notice. Interest is payable on the Loan at 14%
nominal, compounded monthly. The Loan is unsecured and is subject
to legal documentation, and Kropz is expected to draw down the Loan
on or around 28 April 2022.
Due to the anticipated delay in production ramp-up, Kropz is
exploring further funding options with ARC to fund any additional
working capital requirements for Elandsfontein through to positive
cash flow. This amount is expected to be in the region of
approximately ZAR 100 million to ZAR 150 million and is in addition
to the final drawdown of the ZAR Equity Facility and the Loan
(equal to ZAR 58 million).
The Loan is a related party transaction pursuant to Rule 13 of
the AIM Rules for Companies. Machiel Reyneke, 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.
The Company will provide further updates in due course.
For further information visit www.kropz.com or contact:
Kropz Plc
+27 (0) 79 744
Mark Summers (CEO) 8708
Grant Thornton UK LLP Nominated Adviser
Samantha Harrison
Harrison Clarke
George Grainger +44 (0) 20 7383
Ciara Donnelly 5100
Hannam & Partners Broker
Andrew Chubb +44 (0) 20 7907
Ernest Bell 8500
Tavistock Financial PR &
IR (UK)
N ick Elwes +44 (0) 207 920
Jos Simson 3150
Oliver Lamb kropz@tavistock.co.uk
R&A Strategic Communications PR (South Africa)
James Duncan +27 (0) 11 880
3924
james@rasc.co.za
About Kropz Plc
Kropz is an emerging African producer and developer of plant
nutrient feed minerals with phosphate projects in South Africa and
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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END
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