Kropz secures $6.7 million loan for phosphate projects

Published 28/05/2025, 16:04
Kropz secures $6.7 million loan for phosphate projects

LONDON - Kropz Plc (AIM:KRPZ), an emerging African phosphate producer, has finalized a ZAR 130 million (approximately $6.7 million) loan facility with ARC Fund for its Elandsfontein subsidiary, the company announced today. The loan, which was first agreed upon on May 21, 2025, has been formally executed following the issuance of a Limited Indemnity, Security Cession, and Pledge by Kropz in favor of ARC.

The loan is intended to bolster the development of Kropz’s phosphate production projects in South Africa and the Republic of Congo. The company’s strategic goal is to become a leading independent phosphate rock producer and to establish an integrated mine-to-market plant nutrient enterprise within sub-Saharan Africa.

Kropz’s CEO, Louis Loubser, stated that the formal execution of the loan signifies a crucial step forward in the company’s financial strategy, providing the necessary capital to advance its key projects. This move is expected to enhance Kropz’s position in the phosphate market, although specifics regarding the impact on the company’s financials and production capabilities were not disclosed in the press release.

The transaction between Kropz and ARC reflects ongoing investments in the African mining sector, particularly in resources critical for agriculture, such as phosphate. The loan arrangement underscores the confidence that financial partners have in Kropz’s potential within the industry.

The financial services for the loan were managed by Grant Thornton UK LLP as the nominated adviser, with Hannam & Partners acting as the broker. Tavistock provided financial public relations and investor relations in the UK, while R&A Strategic Communications managed public relations in South Africa.

This financial development is based on a press release statement and further details can be found on the company’s website. The execution of the loan is a key milestone for Kropz as it seeks to expand its footprint in the phosphate market and contribute to the agricultural sector in the region.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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