Aim-listed phosphate producer and developer Kropz’s subsidiary Kropz Elandsfontein has secured a R170-million loan facility from ARC Fund.

The loan will be used by Kropz Elandsfontein to fund its cash flow and operational expenditure needs.

The loan is unsecured with no fixed term, with interest payable at the South African prime overdraft interest rate plus 6%, nominal yearly and compounded monthly.

In the event that any amounts outstanding under the loan, together with interest thereon, are not repaid within six months from the first date of use, the interest rate will be increased by an additional 2%. 

Meanwhile, Kropz remains in discussions with potential lenders regarding a replacement loan for a previously acquired BNP loan facility, on which $11.25-million is still owed.

The company says that this replacement loan arrangement is expected to be completed by the second quarter.

Kropz announced on December 21 last year that BNP had extended its waiver period to March 31. The company has started discussions with BNP to further extend the waiver period.