Aim-listed emerging African phosphate producer and developer Kropz made its first drawdown request under the new R550-million convertible equity facility from the company's largest shareholder African Rainbow Capital (ARC) Fund, on December 1.

The first drawdown is for R307.5-million, comprising a set-off of loan one and two of R247.5-million, R10-million for Kropz’s general corporate purposes and funding for the ongoing running costs of the Hinda project. This also includes R50-million for working capital for Elandsfontein.

Going forward, R242.5-million remains available for drawdown over the term of the R550-million equity facility.

The next drawdown of the R550-million equity facility is expected to be made on or about December 23 and monthly thereafter, if required.

Kropz, Kropz Elandsfontein and ARC Fund agreed to an initial R121.5-million ($7.1-million) bridge loan facility, which to date has been fully drawn, on August 9, to meet Kropz's immediate cash requirements for its Elandsfontein mine.

On September 30, the three parties agreed to a further R126-million ($7.4-million) bridge loan facility, which is also fully drawn, to meet further funding requirements at Elandsfontein owing to further delays in the ramp-up of operations.

Loan one and two will be set off against the first drawdown amount under the R550-million equity facility.

ARC Fund has the right, at any time, to convert any outstanding amount under the R550-million equity facility into new ordinary shares in Kropz.