Emerging African phosphate miner Kropz has secured R285-million in bridge loan facilities from the African Rainbow Capital (ARC) Fund.
The finance is meant to fund the immediate and additional near-term requirements as it progresses commercial sales.
Kropz is a phosphate producer and developer located in South Africa, it reported that it sold a further 20 000 t of phosphate concentrate from Elandsfontein.
However, it announced that as with the first bulk sale recorded in January, concentrate production is still not yet at optimal quality, resulting in the concentrate being sold at a discount to current market prices.
Mining Weekly, has it that plant modifications and adjustments to processing parameters have resulted in significant improvements in daily throughput and quality but further optimisation is required, it states.
The company also mentioned that a shortage of fatty acid – a flotation reagent – is also being experienced owing to unexpected shipping delays from the United States.
This is, in turn, resulting in a lower mass recovery in the direct flotation circuits.
“A locally sourced alternative product is being trialled, while various shipping options have been implemented with the US supplier, but this delay in Kropzs’ ability to consistently achieve bulk sale revenues at the market price has resulted in an immediate funding requirement of R25-million for Elandsfontein,” reports the website.
“Kropz will immediately draw down R25-million from the bridge loan with ARC. “
