London Stock exchange welcomes Kropz plc
London Stock Exchange today welcomes Kropz Plc (AIM: KRPZ), an emerging African plant nutrient producer, to trading on the AIM Market. The Company shares will be admitted at 8am on Friday, 30 November 2018. The Company’s vision is to become a leading independent phosphate rock producer and to develop, over time, into an integrated, mine-to-market plant nutrient company focused on sub-Saharan Africa.
Phosphate is essential to the production of crop fertilizers and animal feeds. The market growth in the sector is underpinned by world population expansion and an associated reduction in arable land. Sub-Saharan Africa is known to be the fastest growing population on earth, with regional food demand expected to triple by 2050.
Kropz has established a high-quality phosphate project pipeline, with three projects in the near production, advanced feasibility and early stage of development. The Company is targeting a phosphate resource in excess of one billion tonnes, with more than three million tonnes per annum of phosphate rock production and with more than 50-years cumulative life of mine. The projects are all located in well-established mining jurisdictions, with good locations in proximity to operational export facilities, and available utilities and infrastructure.
The IPO placing raised proceeds of approximately £27.3 million, which will be used to bring the South African Elandsfontein phosphate project into production, define the programme for the development of the Hinda phosphate project in the Republic of Congo, and further explore the company’s greenfield Ghanaian project. The Company will have a market capitalisation of approximately £96.1 million.
Chief Executive Officer, Ian Harebottle, commented:
"We are pleased to have raised gross proceeds of £27.3 million despite the recent volatility across the global stock markets. I would like to thank Africa Rainbow Capital who have continued to invest in the business and the new UK, South African and international shareholders for their support.
"In additional, we are also delighted to announce the acquisition of a majority shareholding in Cominco which owns the Hinda Phosphate Project in the Republic of Congo. Hinda is, believed to be one of the world’s largest, undeveloped phosphate reserves with a positive definitive feasibility study published in 2015. The acquisition of Cominco is in line with Kropz’s strategy of becoming a leading independent phosphate rock producer and to develop, over time, into an integrated, mine-to-market plant nutrient company focused on sub Saharan Africa."
Hannam & Partners and Mirabaud Securities are the Company’s joint brokers, the UK legal adviser is Memery Crystal, the Company’s nominated adviser is Grant Thornton.