Aim-listed Kropz, which operates the Elandsfontein phosphate mine, in South Africa, has secured a R250-million loan facility from the African Rainbow Capital (ARC) Fund to meet the immediate and additional near-term funding requirements at Elandsfontein as it progresses commercial sales, as well as to meet Elandsfontein’s interest and capital payment obligations to BNP Paribas.
Kropz says that, while several sales have been recorded this year, including a further 63 000 t in the current quarter, they are below forecast owing to mine production having been affected by recent unprecedented seasonal rains.
Further, the company has been in talks with BNP Paribas about the refinancing of a loan facility with an outstanding amount of $18.75-million. Kropz expects a replacement for this loan to be in place by the end of this year.
