KROPZ Plc, an emerging African phosphate producer and developer got a bridge loan facility of R140-million from its major shareholder, the African Rainbow Capital (ARC) Fund, to meet the immediate cash requirements at Kropz Elandsfontein.
Elandsfontein, which has South Africa’s second-largest phosphate deposit, is based on the west coast in the Western Cape and was bought by Kropz in 2010. Kropz has since developed an open-pit mining operation and on-site processing facility with a production capacity of 1-million tons per year on the site.
In a statement, Kropz said a second draw down on the loan for an amount of R60-million had been made, following it drawing R80-millon from the facility. The loan is now fully drawn.
Interest on the loan will be 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 on it, is not repaid within six months from the first utilisation date, the interest rate will be increased by an additional 2%.
The loan is repayable on the earlier of a fund raising by Kropz or on demand from ARC, on no less than two business days’ notice. There is no fixed term.
The loan from the ARC Fund replaces the BNP loan facility, which had an outstanding amount of $3,75-million. The group announced on 3 April 2024 that BNP had extended its waiver period to 30 June 2024. BNP extended the waiver to 30 September 2024.
Elandsfontein achieved production of 88 319 tons of phosphate concentrate and sales of 71 948 tons of phosphate concentrate during the second quarter of 2024. This brings production to 162 308 and sales to 152 685 tons for the first half of 2024.
Aside from Elandsfontein, Kropz also has phosphate mining projects 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,” Kropz said in the statement.
