Kropz raises $0.35m, launches open offer

Africa-focussed phosphate explorer and developer Kropz has raised $0.35m before expenses by way of an equity placing with an existing investor and two directors, Robin Renwick and Mark Summers, at a price of 6.75p, it announced on Monday.

The AIM-traded firm also launched an open offer to existing shareholders to raise up to a further $4m, before expenses, at the same price.

It said the placing and open offer were in addition to the equity facility announced on 13 May, which was approved by shareholders at a general meeting on 29 May.

Under the terms of the equity facility, Kropz's major shareholder ARC Fund committed to provide up to the South African rand equivalent of $40m (ZAR 680m) to the company, which would be converted into new ordinary shares at the issue price.

“The proceeds of the fundraise and the equity facility will be used to bring the company's Elandsfontein phosphate project, located in South Africa, into production, and subject to funding raised, advance the new feasibility study at its Hinda project in the Republic of the Congo, and for general working capital purposes,” the board said in its statement.

It said the issue price represented a discount of around 15.6% to the closing mid-market price of 8p per existing ordinary share on 29 May.