Minbos Resources (ASX:MNB) has executed a US$14 million ($20.33 million) loan facility agreement with the International Development Corporation of South Africa (IDC) for the Cabinda Phosphate Project in Angola.
The $50.96 million market capitalisation company says the loan facility, which has a five-year term, will support constructing the Cabinda fertiliser plant.
On 6 September 2024, Minbos welcomed the Banco BAI Chief Executive, four directors, and management to the project in Angola to inspect the Cácata phosphate mine, the Subantando fertiliser plant site, and the deep-water port of Porto do Caio.
Managing Director Lindsay Reed was in Johannesburg, South Africa, to execute the agreement on behalf of the company and its Angolan subsidiary, Soul Rock.
Reed says Minbos is now in a “great funding position” with a complementary mix of funding solutions to advance the project.
“It is wonderful to have the support of the South African IDC for this important project in Sub-Saharan Africa,” he says.
“Equally, we are receiving tremendous support from some of Angola’s most important banking and investment institutions, which is a testament to the project’s importance for agriculture in Angola.”
Minbos notes the US$15 million term loan proposal is awaiting credit committee approval, which is progressing accordingly. Finalising the loan documentation and normal legal and regulatory processes are anticipated to take numerous months.
The company adds that securing approval for the loan is subject to securing guarantees provided by the Fundo de Garantia de Crédito.
The Fundo Soberano of Angola requested its investment in the company to be limited to less than 10% of ordinary Minbos shares and the balance of the US$10 million be invested directly into Minbos’ Mauritian subsidiary Phobos — which holds an 85% shareholding in the Angolan entities of the Cabinda Project.
The Cabinda Project is supported by a 20-year mine life, and a globally important and high-margin product. The Definitive Feasibility Study demonstrates that the project has robust economics, with relatively low capex requirements, which sets Minbos on a pathway to near-term production.
Minbos Resources is a fertiliser-focused mining company that has built a nutrient supply and distribution business that stimulates agricultural production and promotes food security in Angola and the broader Congo Basin.
Write to Aaliyah Rogan at Mining.com.au
Images: Minbos Resources
