- Kropz said it had defaulted on a loan provided by BNP Paribas after it experienced delays and cost increases at its Elandsfontein phosphate development in South Africa.

The target date for first production had been pushed back to the fourth quarter of 2021, due to drawn-out testing work and the need to order newly identified long-lead items.

The total estimated funding requirement was now $40m, excluding $14m already held by subsidiary Kropz Elandsfontein and including working capital, debt repayments and capital expenditure.

Kropz said its $30m project financing facility with BNP Paribas was currently fully drawn.

The company was asked to provide the French bank with positive test work results, a schedule and budget for project completion, together with a funding proposal.

It said it provided all of those things, apart from the funding proposal.

'Consequently, the company advises that Kropz Elandsfontein is in technical default of the BNP Paribas facility, though the company and Kropz Elandsfontein remain in ongoing constructive dialogue with BNP Paribas to remedy the breach.'

Kropz Elandsfontein's capital repayment obligations under the facility were due to commence on 31 March.

The bank had reserved its right to accelerate the loan, but to date had not done so and continued to work constructively with Kropz to find a solution, the company said.

'Kropz Elandsfontein is currently in advanced discussions on a comprehensive funding solution to bring Kropz Elandsfontein into full production,' it added. At 2:38pm: [LON:KRPZ] share price was 0p at 10.5p

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