Elandsfontein bridge loan facility

RNS Number : 3959B
Kropz PLC
30 September 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.

 

30 September 2022

Kropz Plc

("Kropz" or the "Company")

 

Elandsfontein bridge loan facility

 

Kropz Plc (AIM: KRPZ), an emerging African phosphate producer and developer, reports that as a result of the delays in the ramp-up of operations at Kropz Elandsfontein (Pty) Ltd ( " Elandsfontein ") that were announced 9 August 2022, there is an immediate funding requirement of ZAR 60.5 million (approximately US$3.4 million) for Elandsfontein.

 

Kropz, Elandsfontein and ARC have agreed to a further ZAR 126 million (approximately US$ 7 million) bridge loan facility (the "September Loan") to meet immediate cash requirements at Elandsfontein to the end of October 2022. Kropz will draw down ZAR 60.5 million (approximately US$ 3.4 million) of the September Loan on 5 October 2022.

 

The September Loan is in addition to the ZAR 121.5 million (approximately US$ 7.3 million) bridge loan facility Kropz, Elandsfontein and ARC entered into to meet immediate cash requirements at Elandsfontein to the end of August 2022 (the "August Loan") (announced on 9 August 2022). 

 

As announced 9 August 2022, Kropz and the ARC Fund are currently working on a comprehensive funding structure to encompass the August Loan and the September Loan and any further working capital requirements for Elandsfontein and for Kropz.

 

The September Loan is unsecured, repayable on demand, and there are no fixed repayment terms. It is repayable by Elandsfontein on no less than two business days' notice. Interest is payable on the September Loan at the South African prime overdraft interest rate plus 6%, nominal per annum and compounded monthly.

 

The September 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 September Loan by the Company's board. The directors of the Company, who are considered independent for the purposes of the September Loan, having consulted with the Company's nominated adviser, consider the terms of the September 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

Via Tavistock

Mark Summers (CEO)

+44 (0) 207 920 3150



Grant Thornton UK LLP

Nominated Adviser

Samantha Harrison

Harrison Clarke

George Grainger

Ciara Donnelly

+44 (0) 20 7383 5100

 


Hannam & Partners

Broker

Andrew Chubb

Ernest Bell

 +44 (0) 20 7907 8500



Tavistock

Financial PR & IR (UK)

Emily Moss

Nick Elwes

Adam Baynes

+44 (0) 207 920 3150

kropz@tavistock.co.uk



R&A Strategic Communications

PR (South Africa)

Charmane Russell

+27 (0) 11 880 3924

charmane @rasc.co.za 

 

About Kropz Plc

Kropz is an emerging African phosphate producer and developer 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-

 

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 or visit 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.
 
END
 
 
MSCSDSFESEESEIU

Companies

Kropz (KRPZ)
UK 100

Latest directors dealings