Australia-listed Minbos Resources is making significant strides in securing funding for its Cabinda phosphate project, in Angola. Central to these efforts is a $14-million loan facility from South Africa’s Industrial Development Corporation (IDC).
The facility, which received credit committee approval in April this year, is pivotal in placing Minbos in a fully funded position to start construction of the Cabinda mine and fertiliser project.
In an update, Minbos reports that it is making progress with satisfying the conditions for the IDC loan. Regarding an equity funding condition, the company has engaged the Angolan Sovereign Fund (FSDEA) on an equity injection for $10-million to $15-million, with a view to taking a strategic interest in Minbos and demonstrating the support the project has within Angola.
The FSDEA is currently completing site visits and due diligence on Minbos.
In parallel, the company is engaging with an emerging market fund as an alternative or co-investor. Both funds are expected to put proposals to their investment committees by mid-July.
For the working capital facility, the IDC has adjusted its condition that Minbos must obtain a $10-million working capital facility and instead requires the company to obtain a term loan for the same amount.
To meet this condition, Minbos has approached several banks in Angola and says it is well advanced in a loan application process with Banco (BAI) – one of the country’s biggest banks.
As part of a due diligence, BAI visited the Cabinda mine and fertiliser production sites and inspected all imported equipment. The Angola Credit Guarantee Fund also visited the Cabinda sites in early July.
The company is expecting BAI will shortly be in a position for its credit committee to make an approval decision on the loan.
Minbos further reports that it expects to have converted a binding memorandum of understanding (MoU) with Grupo Carrinho into a formal offtake agreement in the coming weeks.
Minbos is also considering an immediate expansion of the plant.
The company last month announced a nonbinding MoU with South Africa-based Foskor for a potential supply agreement from Cabinda.
The Cabinda phosphate project, comprising the Cácata phosphate deposit and the Futila fertiliser plant, will operate for 20 years, producing 236 000 t/y of fertiliser over 20 years, based on a maiden reserve of 4.72-million tonnes at 30.1% phosphates at the Cácata phosphate mine.