Kropz Plc has received a loan of R200 million ($13.2 million) from the African Rainbow Capital (ARC) Fund, an investment vehicle linked to South African billionaire Patrice Motsepe.
The loan will be used to enhance the Elandsfontein phosphate project as it moves to become South Africa’s second-largest source of phosphate rock for making phosphoric acid.
Kropz is an emerging African phosphate explorer and developer, with phosphate mining and exploration projects in West Africa. Its Elandsfontein operations pass through a biodiverse and climate-change-resilient corridor, earmarked for inclusion in the West Coast National Park.
The company, which lists on the London Stock Exchange, is headquartered in London and majority-owned by Motsepe. He owns an 82.7-percent controlling stake in the mining company.
On Sept. 29, MarketWatch reported Kropz as saying that it had agreed to the funding, a convertible equity facility to fund the Elandsfontein phosphate project in South Africa.
However, the company estimated a financial shortfall of around $8.5 million regarding the commissioning and ramp-up of Elandsfontein before first revenue could be achieved in Q1 2022.
Well over two weeks ago, Kropz announced plans to commence production at its Elandsfontein mine following the dismissal of an appeal against the mine’s water-use license by the Department of Forestry and Water Affairs’ Water Tribunal.
The case had been ongoing for years, with the association accusing Kropz of dewatering the Elandsfontein aquifer. The legal battle automatically suspended the miner’s project for years at the biodiverse Elandsfontein mine.