ASX-listed Minbos Resources on Monday announced a $16-million debt facility from the Industrial Development Corporation of South Africa (IDC) to advance construction of its Cabinda phosphate fertiliser project in Angola.

The first drawdown is expected by the end of March, subject to the completion of security arrangements and relevant shareholder approvals.

The funding will be applied to Phase 2 construction of the Cabinda phosphate fertiliser plant, covering structural, mechanical, electrical and instrumentation works. Phase 1 construction is scheduled for completion in March.

Security agreements remain subject to approval by shareholders of Phobos, a Minbos subsidiary in which the Fundo Soberano de Angola (FSDEA) is an investor, as well as shareholders of Angolan entities Soul Rock Lda and Minbos Resources Lda.

During the week of February 23, acting CEO Rob Newbold and CFO Blair Snowball travelled to Luanda for meetings with key stakeholders, including National Agency for Mineral Resources chairperson Jacinto Ferreira dos Santos Rocha and FSDEA chairperson Armando Manuel.

Minbos said discussions with the regulator confirmed that contradictory information regarding the expiry date of its existing mining licence would be rectified. A meeting with FSDEA reaffirmed support for the IDC facility and established a joint task force to pursue additional project funding, particularly to meet working capital requirements.

“Minbos is grateful for the continuous support shown, and hard work performed, by the IDC," commented Snowball. "The project has needed to overcome numerous challenges since a loan agreement was first signed with IDC in September 2024. Fortunately, in overcoming the challenges, the fundamentals of the project are far stronger than before.

“In parallel, the company has worked extremely hard to secure funding with an Angolan lender. Once secured it will complete the funding requirement for construction, but also, importantly, will provide an optimal structure for de-risking the project for all lenders.

“The IDC is already engaged in negotiations for an intercreditor agreement with both of the company’s potential Angolan lenders.”