Business
Elandsfontein update and further bridge loan
Elandsfontein update and further bridge loan.
About this update from Kropz Plc
[{"type":"text","content":"\n \n \n 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.\n \n \n \n \n \n 14 March 2023\n \n \n \n \n \n \n \n \n Kropz Plc\n \n \n \n (\"Kropz\" or the \"Company\")\n \n \n \n \n \n \n Elandsfontein phosphate project sales update and further bridge loan facilities\n \n \n \n \n \n \n \n \n Kropz Plc (AIM: KRPZ), an emerging African phosphate producer and developer, is pleased to announce a further sale of 20,000 tonnes of phosphate concentrate from Kropz Elandsfontein (Pty) Ltd (\n \"\n \n Elandsfontein\n \n \"). As with the first bulk sale recorded in January 2023, concentrate production is still not yet at optimal quality, thus it is still being sold at a discount to current market prices. Plant modifications and adjustments to processing parameters have resulted in significant improvements in daily throughput and quality but further optimisation is required. A shortage of fatty acid, a flotation reagent, is also being experienced due to unexpected shipping delays from the USA which is resulting in lower mass recovery in the direct flotation circuits. A locally sourced alternative product is being trialled while various shipping options have been implemented with the USA supplier. This delay in Kropz' ability to consistently achieve bulk sale revenues at market price has resulted in an immediate funding requirement of ZAR 25 million (approximately US$ 1.4 million) for Elandsfontein.\n \n \n \n \n \n Consequently, Kropz, Elandsfontein and ARC Fund (\"ARC\") have agreed to ZAR 285 million (approximately US$ 15.5 million) bridge loan facilities (the \"Loan\") to meet the immediate and additional near term funding requirements at Elandsfontein as it progresses commercial sales. Kropz will draw down ZAR 25 million (approximately US$ 1.4 million) of the Loan on 14 March 2023.\n \n \n \n \n \n The Loan is unsecu...