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LONDON - African phosphate producer Kropz Plc (AIM:KRPZ) has secured a ZAR 200 million (approximately $11.4 million) loan facility from ARC Fund to address ongoing capital expenditure requirements at its Elandsfontein operation, the company announced Monday.
The loan comes as Kropz continues to face challenges during the trial production phase at its Elandsfontein mine. During the second quarter of 2025, the operation produced 74,717 tonnes of phosphate concentrate and sold 56,300 tonnes.
The new funding will be used to support Elandsfontein’s cashflow and operational expenditure needs. Interest on the loan is set at the South African prime overdraft interest rate plus 6%, compounded monthly, with no fixed repayment term.
The loan agreement constitutes a related party transaction as Gerrit Duminy, a Kropz director, represents ARC Fund. According to the company’s statement, Duminy was not involved in the board’s approval of the loan.
Kropz previously announced on May 21 that it was implementing several projects to address production challenges at Elandsfontein, which has necessitated continued capital expenditure.
The company has issued security guarantees for the loan through its subsidiaries. Kropz SA has provided a Guarantee, Security Cession and Pledge in favor of ARC, while Kropz Plc has issued a Limited Indemnity, Security Cession and Pledge.
Kropz describes itself as an emerging African phosphate producer with projects in South Africa and the Republic of Congo.
The information was disclosed in a press release statement from the company.
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