26th Feb 2020 10:36
(Alliance News) - Kropz PLC said Wednesday its chief executive has resigned, with a review of senior management to also begin.
Shares in the African phosphate explorer and developer were down 24% in London on Wednesday morning at 8.00 pence each.
Ian Harebottle will be stepping down from his role on Saturday, but his contract stipulates a three-month notice period. Kropz said it will use this time to "ensure a smooth transition period".
Current Chief Financial Officer Mark Summers has been appointed interim CEO.
Kropz said it intends to begin a review of senior management in "due course".
Chair Robin Renwick said: "I and the board have been extremely grateful for the contribution Ian has made as CEO of Kropz. He kindly undertook not to leave until the company had made progress towards a solution for Elandsfontein which, with thanks to the support of African Rainbow Capital, is now the case. We wish him well in his future endeavours."
In mid-February, Kropz said its latest metallurgical test work on the Elandsfontein phosphate project in South Africa had identified and confirmed a processing alternative to the previous flotation circuit.
Kropz said the test work has consistently demonstrated that the phosphate mine processing plant will produce a final saleable concentrate to expected specification of 68% bone phosphate of lime using a flotation configuration of direct followed by reverse, flotation circuit.
The target date for commercial production at Elandsfontein is the fourth quarter of 2021, with a total estimated funding requirement of USD40 million, excluding the USD14 million already held by its subsidiary Kropz Elandsfontein Pty Ltd.
On Wednesday, Kropz announced that 74%-owned subsidiary Kropz Elandsfontein had entered into a ZAR30 million, about USD2.0 million, loan facility with 26% shareholder ARC Fund.
ARC Fund is Kropz Elandsfontein's black economic empowerment shareholder in South Africa.
Kropz will use the funds to progress the modifications required at the Elandsfontein phosphate project.
"The immediate commencement of the execution plan and procurement of long lead time items will better enable Kropz Elandsfontein to meet its new target date for commercial production in the fourth quarter of 2021," Kropz said.
The loan is repayable on demand and there is no fixed term of repayment. The interest rate on the loan is the prime interest rate set by Absa Bank Ltd, currently 9.75%, plus 400 basis points.
Kropz added: "Kropz Elandsfontein continues its advanced discussions on the comprehensive funding solution to bring Elandsfontein into full production and the company will provide a further update to the market in due course."
By Paul McGowan; [email protected]
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