Kropz PLC Loan Facility (4858M)
September 14 2023 - 5:44AM
UK Regulatory
TIDMKRPZ
RNS Number : 4858M
Kropz PLC
14 September 2023
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 September 2023
Kropz Plc
("Kropz" or the "Company")
Elandsfontein phosphate operational update, further loan
facility and update on the existing BNP Paribas ("BNP") loan
facility agreement
Kropz Plc (AIM: KRPZ), an emerging African phosphate producer
and developer, announces Kropz Elandsfontein (Pty) Ltd ("
Elandsfontein ") and The ARC Fund ("ARC") have agreed to a ZAR 250
million (approximately US$ 13.2 million) loan facility (the "Loan")
to meet the immediate and additional near-term funding requirements
at Elandsfontein as it progresses commercial sales and to meet
Elandsfontein's interest and capital payment obligations to BNP
Paribas SA.
While several sales have been recorded in 2023, including a
further 63,000 tonnes in the current quarter, they are below
forecast, due to mine production having been affected by recent
unprecedented seasonal rains.
BNP loan facility agreement update
The Company previously announced on 31 July 2023 that it is in
the process of refinancing the BNP loan facility (outstanding
amount US$ 18,750,000) and that a replacement loan was expected to
be in place in the third quarter of 2023, before expiry of the
facility. It is now expected that a replacement loan will be in
place by the end of 2023 and the Company is in discussion with BNP
to extend its waiver period in line with this timetable.
The Company will provide further updates in due course.
The Loan
The Loan will be used to fund Elandsfontein's capital
expenditure to increase operational capacity and assist in meeting
its creditor obligations, particularly with regard to the extended
servicing of the BNP loan facility, and operational expenditure
needs.
The Loan is unsecured, repayable on demand, and there are no xed
repayment terms. It is repayable by Elandsfontein on terms of no
fewer than two business days' notice. Interest is payable on the
Loan at the South African prime overdraft interest rate plus 6%,
nominal per annum and compounded monthly. In the event that any
amounts outstanding under the Loan, together with interest thereon,
is not repaid within 6 months from the first utilisation date, the
interest rate will be increased with an additional 2%.
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. 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.
For further information visit www.kropz.com or contact:
Kropz Plc Via Tavistock
Louis Loubser (CEO) +44 (0) 207 920 3150
Grant Thornton UK LLP Nominated Adviser
Samantha Harrison
Harrison Clarke
Ciara Donnelly +44 (0) 20 7383 5100
Hannam & Partners Broker
Andrew Chubb
Ernest Bell +44 (0) 20 7907 8500
Tavistock Financial PR & IR (UK)
Nick Elwes +44 (0) 207 920 3150
Jos Simson kropz@tavistock.co.uk
Adam Baynes
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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