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Kropz has been admitted onto the AIM market of the London Stock Exchange.

As part of the admission, Kropz has raised gross proceeds of approximately £27.3 million before expenses with new UK, South African and international shareholders, and existing shareholders.

The vision of the group is to become a leading independent phosphate rock producer and to develop, over time, into an integrated, mine-to-market plant nutrient company focused on sub-Saharan Africa.

Acquisition of Cominco Resources

On 1 November 2018, the company made an all share offer to acquire Cominco Resources, which through its wholly owned subsidiary, Cominco S.A., currently owns 100% of the Hinda Phosphate Project which is expected to be diluted to 90% through the participation of the Republic of Congo.

It is believed to be one of the world’s largest, undeveloped phosphate reserves, in an all share transaction valuing Cominco at US$40 million.

Kropz has received valid acceptances from 71.3% of the Cominco Shareholders and accordingly, on admission, it will acquire 71.3% of Cominco.

“We are pleased to have raised gross proceeds of £27.3 million despite the recent volatility across the global stock markets,” says Kropz CEO, Ian Harebottle.

“I would like to thank the ARC Fund who have continued to invest in the business and the new UK, South African and international shareholders for their support.

“We’re also delighted to announce the acquisition of a majority shareholding in Cominco which owns the Hinda Phosphate Project in the Republic of Congo.

“Hinda is believed to be one of the world’s largest, undeveloped phosphate reserves with a positive definitive feasibility study published in 2015. T

“The Cominco transaction is in line with Kropz’s strategy of becoming a leading independent phosphate rock producer and to develop, over time, into an integrated, mine-to-market plant nutrient company focused on sub Saharan Africa.”

Highlights

  • Fundraising of approximately £27.3 million via a placing of 68,359,376 new shares with new UK, South African and international shareholders, and existing shareholders
  • Based on the placing price of 40 pence, the market capitalisation of Kropz on admission will be £96.1 million
  • The net proceeds of the fundraising will be used to complete the upgrade and commissioning of its flagship Elandsfontein phosphate project, define the programme for the development of Hinda, explore Kropz’s greenfield Ghanaian project, reduce the its current debt position and to take advantage of AIM’s profile, liquidity and access to a broad institutional investor base
  • On admission, Kropz will have 240,228,778 shares in issue and approximately 15% of shares in public hands
  • Elandsfontein, is located on the West Coast of South Africa. The project is fully permitted and expected to start production in H2, 2019. To date approximately US$120 million has been invested in Elandsfontein, on a high-quality processing plant and mine infrastructure. The project has capacity to deliver up to 1.2 Mtpa of 31% P2O5 phosphate rock concentrate with conditional off-take agreements in place
  • On admission, Kropz will acquire 71.3% of Cominco who, through its wholly-owned subsidiary, Cominco SA, owns the Hinda phosphate project
  • Hinda has a well-defined, JORC compliant resource, that has been comprehensively tested to deliver a positively feasible phosphate resource in the RoC
  • Kropz also owns the Aflao project, an exploration prospect in Ghana that lies on the extension of a quality, producing phosphate resource in neighbouring Togo
  • A strong BEE Partner in the ARC Fund, which has similar aims of achieving transformation within the African continent and to ensure food security for the growing population; and
  • An experienced management team capable of leading and growing Kropz to become a major player within the sub-Saharan African fertilizer sector, with a track record in exploring, developing, operating and consolidating assets on the African continent, as well as disrupting other mature sectors throughout the supply chain.

The total number of shares with voting rights in Kropz with effect from admission is 240,228,778.

This figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or a change of their interest in, the company under the FCA’s Disclosure Guidance and transparency rules.