Emerging African phosphate explorer and developer Kropz has made its fourth drawdown request under the $5-million equity facility from the African Rainbow Capital (ARC) Fund, the company’s major shareholder.
The fourth drawdown request of $400 000 under the new equity facility will be settled by the issue of more than 6.9-million new ordinary shares at the issue price of 4.2p a share to ARC on December 13.
The proceeds drawn down from the new equity facility would be applied to the continuing workstream on the Hinda project and for general corporate purposes, Kropz said on December 8.
The next drawdown of $200 000 under the new equity facility is expected to be made by March 2022, following which the new equity facility will be fully drawn down.
In addition, Kropz announced in September that it had entered into a new conditional convertible equity facility of up to R200-million with ARC, in order to deliver the company's Elandsfontein phosphate project to first revenue.
The first drawdown of R90-million of the new equity facility was made in October, with the second drawdown of R37-million to be made on December 10.
If required, Kropz said, the remaining R73-million would be drawn down in the first quarter of 2022.