African Phosphate Producer And Developer Kropz Enters Into A New Conditional Convertible Equity Facility With ARC Fund
African Phosphate Producer And Developer Kropz Enters Into A New Conditional Convertible Equity Facility With ARC Fund. Kropz Plc (AIM: KRPZ), an emerging African phosphate producer and developer, announces it has entered into a new conditional convertible equity facility of up to ZAR 550 million (approximately US$ 31.6 million), with ARC Fund, the Company’s major shareholder, in order to progress the ramp-up of operations at the Company’s Elandsfontein phosphate project in South Africa. In addition, the funding would also provide working capital to the Company for general corporate purposes and further funding, of approximately US$ 1 million for working capital and early site works, at the Hinda project in the Republic of the Congo.
As previously announced, Kropz Elandsfontein (Pty) Ltd (“Kropz Elandsfontein”) requires additional working capital due to delays in the ramp-up of operations at the Elandsfontein project and subsequent delays in first revenues. The New ZAR 550 Million Equity Facility is in addition to the: • ZAR 200 million conditional equity facility which ARC and the Company announced on 29 September 2021 (“ZAR 200 Million Equity Facility”). This facility is fully drawn and has not been converted to new ordinary shares in the Company; and • ZAR 177 million conditional equity facility which ARC and the Company announced on 11 May 2022 (“ZAR 177 Million Equity Facility”). This facility is fully drawn and has not been converted to new ordinary shares in the Company (collectively the “Existing Equity Facilities”).
As announced on 9 August 2022, Kropz, Kropz Elandsfontein and ARC agreed to a ZAR 121.5 million (approximately US$ 7.3 million) bridge loan facility (“Loan 1”) to meet immediate cash requirements at Elandsfontein. A draw down ZAR 60 million (approximately US$ 3.6 million) of Loan 1 was made on 9 August 2022, ZAR 47 million (approximately US$ 360,000) on 1 September 2022 and the third and final draw down of ZAR 14.5 million (approximately US$ 800,000) was made on 29 September 2022. Loan 1 is fully drawn at the date of this announcement.
Kropz is an emerging African producer and developer of plant nutrient feed minerals with phosphate 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.
