Australia-listed Minbos Resources on Friday announced the immediate resignation of MD Lindsay Reed and the appointment of chief marketing and strategy officer Rob Newbold as acting CEO, as the company worked through administrative challenges affecting its Angolan mining licence and project financing.

Reed will remain on the board as a nonexecutive director. Newbold will assume day-to-day management responsibilities while Minbos undertakes a formal search for a permanent CEO. 

"Stepping into this new role at Minbos is a responsibility I take personally," said Newbold. "I have a genuine passion for agriculture and for the impact it can have on communities. Having worked alongside our team in Angola for nearly three years, I have seen first-hand what the team is capable of and the important role Minbos can play in supporting Angola’s agricultural development. A key part of that is helping Angola unlock new export revenue by taking the company’s product to international markets."

LICENCE AND FUNDING CHALLENGES
Minbos also provided an update on administrative issues relating to its mining licence for the Cácata phosphate deposit in Angola.

Following an international tender process, the company entered into a Mining Investment Contract (MIC) with Angola’s Ministry of Mineral Resources, Petroleum and Gas in December 2020. The MIC grants mineral rights for the life-of-mine as outlined in the feasibility study submitted during the tender, which contemplated 21 years of mining operations and two additional years for beneficiation and rehabilitation.

A mining licence was issued on March 10, 2021. However, the licence contains clerical errors, including listing an expiry date of March 10, 2026, while also stating a commencement date of March 10, 2021 and a validity period of 10 years.

Minbos said the MIC remained valid and enforceable under Angolan law and that it had been engaging with the Ministry to rectify the inconsistencies. While it had received assurances that the issues were clerical, corrections had not yet been finalised.

The company has also faced delays in progressing certain corporate administrative matters within its Angolan subsidiary, Soul Rock, which are required to satisfy conditions precedent to project financing for the Cabinda phosphate project. These delays relate to interactions with certain local shareholders and have affected routine governance approvals, including annual accounts.

Minbos said resolving these matters was a strategic priority and that it was working with the Angolan government to progress solutions.

In the interim, the board had adopted a disciplined capital management approach, conserving cash and prioritising essential expenditure. The company confirmed there was no change to its efforts to secure debt financing from the Industrial Development Corporation of South Africa and two Angolan banks, with a further update expected shortly.

The board also acknowledged the support of the Angolan Sovereign Wealth Fund, as well as diplomatic and government representatives assisting in advancing the projects.