Minbos Resources (ASX:MNB) expects to imminently finalise the balance of the condition precedent for US$14 million ($20.6 million) in construction funding by the Industrial Development Corporation of South Africa (IDC).
The $57.98 million market capitalisation company recently announced that Fundo Soberano de Angola —the Angolan Sovereign Wealth Fund (FSDEA) — has confirmed approval for a US$10 million strategic investment in Minbos, to support construction of the Cabinda Phosphate Fertiliser Project in Angola.
FSDEA has provided Minbos with written approval of the company’s proposal, which contemplated a US$10m investment.
The Angola Sovereign Fund completed its due diligence in co-operation with the IDC, with the investment enabling Minbos to meet the IDC’s condition precedent of raising $US11 million for equity to support project development.
The FSDEA has allocated US$250 million dollars to the agricultural sector, with the aim of generating economic growth in the next three to five years. Agriculture is one of the most promising commercial sectors in Angola and has been one of the main focuses of foreign direct investment in the region.
The fund is a collective public institution with legal personality and administrative, financial, and patrimonial autonomy.
It specialises in strategic investments, whether in financial markets or in alternative assets, which is responsible for setting up a sustainable mechanism to ensure long-term returns, the preservation of capital, and support for Angola’s sustainable socio-economic growth.
The FSDEA expects that its investments in the agricultural sector will contribute decisively to the economic growth in Angola and other regions of the continent through increased revenue from this activity.
Write to Adam Orlando at Mining.com.au
Images: Fundo Soberano de Angola
