Kropz PLC Disposal of Aflao Project (2580P)

TIDMKRPZ

RNS Number : 2580P

Kropz PLC

16 February 2021

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

16 February 2021

Kropz Plc

("Kropz" or the "Company")

Disposal of Aflao Project

Kropz Plc (AIM: KRPZ) advises that, further to the announcement on 26 August 2020, where the Company stated that it had decided to divest its interests in Aflao, the phosphate project located in Ghana, the Company has agreed to sell its shareholding in First Gear Exploration Ltd ("First Gear Exploration"), a 50 per cent. + 1 Ordinary Share owned subsidiary of the Company, to Consortium Minerals Ltd ("Consortium") (the "Disposal"). As a result of the sale, Kropz will have no further interest in Aflao.

Consortium is a subsidiary of Russell Brooks Ltd, who is a minority shareholder in First Gear Exploration, with a 15 per cent. shareholding prior to the Disposal.

Kropz is the beneficial owner and registered holder of 1,125,001 Ordinary Shares, representing its full 50 per cent. + 1 Ordinary Share interest in First Gear Exploration. The consideration for the sale of the Kropz interest in First Gear Exploration is:

   --    US$ 5,000 cash ("Share Consideration"); and 

-- US$ 322,529 ("Loan Consideration") deferred cash consideration in respect of the shareholder loan from Kropz to First Gear Exploration, which is being novated to Consortium.

The Share Consideration will be payable by Consortium within seven days of completion. The Loan Consideration will be payable by Consortium to Kropz upon, the earlier of,

(i) the sign-off by a competent person of a definitive feasibility study on the Aflao deposit, as defined in the JORC Code 2012 edition; or

(ii) Consortium disposing or transferring the Shares prior to the event described in (i) being achieved; or

(iii) Consortium disposing or transferring the prospecting right prior to the event described in (i) being achieved.

This disposal allows the Company to focus on its strategy of developing the Elandsfontein phosphate project in South Africa and progressing the Hinda phosphate project in the Republic of Congo.

For further information visit www.kropz.com or contact:

 
 Kropz Plc 
 Mark Summers (CEO)              [phone] 
 
 Grant Thornton UK LLP           Nominated Adviser 
 Samantha Harrison 
  Harrison Clarke                [phone] 
 George Grainger 
 
 Hannam & Partners               Broker 
 Andrew Chubb 
  Ernest Bell                     [phone] 
 
 Tavistock                       Financial PR & IR (UK) 
 Emily Moss                      [phone] 
  Jos Simson                      [e-mail] 
  Oliver Lamb 
 
 R&A Strategic Communications    PR (South Africa) 
 James Duncan                    [phone] 
                                  [e-mail] 
 

About Kropz Plc

Kropz is an emerging African phosphate explorer and developer, with an advanced stage phosphate project in South Africa and a phosphate project in the Republic of Congo. The vision of the Group is to become a leading independent phosphate rock producer and to develop into an integrated, mine-to-market plant nutrient company focusing on sub-Saharan Africa.

-ENDS-

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February 16, 2021 05:50 ET (10:50 GMT)