Business
Loan Facility
Loan Facility.
About this update from Kropz Plc
[{"type":"text","content":"\n\nThe 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 \n14 September 2023\nKropz Plc\n(\"Kropz\" or the \"Company\")\n \nElandsfontein phosphate operational update, further loan facility and update on the existing BNP Paribas (\"BNP\") loan facility agreement\n \nKropz 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.\n \n \nWhile 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.\n \nBNP loan facility agreement update\n \nThe 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.\n \nThe Company will provide further updates in due course.\n \nThe Loan\n \nThe 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.\n \nThe Loan is unsecured, repayable on demand, and there are no fixed rep...