Kropz Identifies Alternative To Elandsfontein Flotation Circuit

(Alliance News) - Kropz PLC said Friday that tits latest metallurgical test work on the Elandsfontein phosphate mine in South Africa has identified and confirmed a robust processing alternative to the previous flotation circuit.

The African phosphate explorer and developer said the test work has consistently demonstrated that the phosphate mine processing plant will produce a final saleable concentrate to expected specification of 68% bone phosphate of lime using a flotation configuration of direct followed by reverse, flotation circuit.

The target date for commercial production at Elandsfontein is now the fourth quarter of 2021 the company said, with a total estimated funding requirement of USD40 million, excluding the USD14 million already held by its subsidiary Kropz Elandsfontein Pty Ltd.

Kropz also said its subsidiary Kropz Elandsfontein has a project finance facility with BNP Paribas SA for USD30 million, which is currently fully drawn.

The companies had agreed,"in light of the delays in the commissioning of the project", that Kropz Elandsfontein would provide BNPP with project work results.

Kropz Elandsfontein said it was able to satisfy all of BNPP's information requests by the agreed date, other than the funding proposal to project completion.

Consequently, the company said Kropz Bloemfontein is now in technical default of the BNPP facility, though it remains in "ongoing constructive dialogue with BNPP to remedy the breach."

Kropz Bloemfontein capital repayment obligations are due to commence on March 31 and together with the BNPP security over USD14 million, currently held on account in South Africa, "will require re-negotiation as part of these discussions due to the delay in the project timetable."

Kropz shares were untraded in London on Friday, last traded at 9.00 pence each.

By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com

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