Phosphate explorer and developer Kropz has made its second quarterly drawdown request of $4-million under the equity facility with its major shareholder, the African Rainbow Capital (ARC) Fund.
The second drawdown will be paid through the issuing of 50.96-million new ordinary shares at the issue price of 6.75p apiece to ARC Fund on September 25.
The equity facility is for an amount of $40-million (which cannot exceed R680-million) as announced on May 13.
The next drawdown of the equity facility is expected to be made on or about December 10, and quarterly thereafter, in line with the terms of the equity facility.
Meanwhile, following the amendment to the project loan facility with retail banking company BNP Paribas South Africa, relating to a fully drawn credit facility, Kropz has agreed with BNP on the utilisation of about $15-million (R200-million) of the existing cash balance, held on account, which will now be spent on the construction and commissioning of the Elandsfontein project, in South Africa, on a pro rata basis with drawdowns of the equity facility.