Kropz, the London-listed phosphate explorer and developer, has recently obtained a new loan from ARC Fund. The loan, amounting to 115 million South African rand ($6.3 million), comes as a result of delays caused by the refinancing of a BNP loan. Kropz intends to use the funds to fulfill its creditor obligations and cover operational expenses.
The unsecured loan carries an interest rate of the South African prime overdraft interest rate plus 6%, with interest compounded monthly. The loan agreement between Kropz’s subsidiary, Kropz Elandsfontein (Pty) Ltd., and ARC Fund has already been initiated, with ZAR62.5 million drawn on Friday.
Kropz has disclosed that BNP has extended the waiver period from October to December 31. The company anticipates securing a replacement loan in the first quarter of 2024. The outstanding amount of the BNP loan stands at $15 million.
Kropz is currently engaged in discussions with BNP regarding an extension of the waiver period.
Shares in Kropz remained stable at 1.50 pence as of 12:14 GMT.