Aim-listed emerging African phosphate explorer and developer Kropz has entered into a $5-million conditional convertible equity facility with major shareholder ARC Fund to finance the ongoing work at Kropz’s Hinda phosphate project in Congo-Brazzaville.
The new facility is in addition to the $40-million facility which ARC and Kropz entered into in May 2020.
The equity facility will be drawn down on a quarterly basis at the discretion of Kropz, with the first quarterly amount to be drawn down on March 10.
The facility is convertible following a draw down into newly issued ordinary shares of 0.1p apiece in the capital of Kropz at a fixed price of 4.202p apiece and a fixed exchange rate of $1 to £0.73 at each quarterly draw-down.
Earlier in February, Kropz appointed engineering and construction firm Hatch Africa to complete an updated feasibility study on Hinda, which will target a phased approach in line with the terms of the mining investment agreement, with initial production of one-million tonnes a year of phosphate rock being exported from the existing port facility at Pointe-Noire, which is 50 km from Hinda.
A second phase production ramp-up will also be evaluated with export from a new port site, located north of Pointe-Noire.