ASX-listed Minbos Resources announced on Monday that the Angolan Sovereign Wealth Fund (Fundo Soberano de Angola, FSDEA) has approved a $10-million strategic investment in the company.
This investment will support the construction of the Cabinda Phosphate Fertiliser Project (CPFP).
FSDEA provided Minbos with written approval, detailing a $10-million investment at a price of either A$0.08 per share or the volume-weighted average price of Minbos shares for the ten days preceding the execution of the final transaction documents, whichever is greater.
The due diligence process was conducted in collaboration with the Industrial Development Corporation of South Africa Limited (IDC).
FSDEA’s investment is expected to help Minbos meet IDC’s condition precedent of raising $11 million in equity funding to advance the CPFP.
Minbos anticipates finalizing the remaining conditions for the IDC’s $14-million construction funding within the coming weeks.
Minbos Managing Director Lindsay Reed commented, “The Sovereign Wealth Fund and IDC share a common goal of developing the Cabinda Phosphate Fertiliser Project for both domestic and export markets. This collaboration will enhance CPFP’s financial stability and help manage our customer risk profile.”
The IDC facility, which received credit committee approval in April, is crucial in positioning Minbos to fully fund and commence construction of the Cabinda mine and fertilizer project.
The Cabinda Phosphate Project includes the Cácata phosphate deposit and the Futila fertilizer plant. The project is expected to operate for 20 years, producing 236,000 tonnes of fertilizer annually, based on a maiden reserve of 4.72 million tonnes at 30.1% phosphate from the Cácata mine.
