Minbos attracts $10m investment from Angola Sovereign Wealth Fund
ASX-listed Minbos Resources on Monday announced that the Angolan Sovereign Wealth Fund had confirmed approval for a $10-million strategic investment in the company.
The investment would support the construction of the Cabinda phosphate fertiliser project (CPFP).
Fundo Soberano de Angola (FSDEA) has approved Minbos with a written approval of the proposal, which contemplates a $10-million investment at the greater of A$0.08 a Minbos share, or the volume-weighted average price for Minbos shares for the ten days immediately prior to the execution of definitive transaction documents.
FSDEA completed its due diligence in cooperation with the Industrial Development Corporation of South Africa Limited (IDC) and understands its investment will enable the company to meet IDC’s condition precedent of raising $11-million for equity funding to support the development of the CPFP.
Minbos expects to finalise the balance of the IDC’s conditions precedent for the $14-million construction funding provided by the IDC in the coming weeks.
“The Sovereign Wealth Fund and IDC share the same interest in developing the Cabinda Phosphate Fertiliser Project for domestic and export sales. This will strengthen CPFP’s financials and manage our customer risk profile,” commented Minbos MD Lindsay Reed.
The IDC 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.
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.
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