Minbos Resources (ASX:MNB) has executed a US$14 million ($20.3 million) loan facility agreement with the International Development Corporation of South Africa.
The funds will support the construction of the Cabinda Phosphate Project fertiliser plant in Angola.
Managing Director Lindsay Reed personally executed the agreement in Johannesburg, South Africa, on behalf of Minbos and its Angolan subsidiary, Soul Rock.
The company is set to advance its Cabinda Phosphate Project significantly with this financial backing.
"The company is now in a great funding position with a complementary mix of funding solutions to advance the Cabinda Phosphate Project. It is wonderful to have the support of the South African IDC for this important project in Sub-Saharan Africa," said Reed.
The progression with Banco BAI's US$15 million ($21.8 million) term loan proposal is also moving favourably, after the Banco BAI CEO and directors inspected Minbos' Cácata phosphate mine and Subantando fertiliser plant site.
The finalisation of loan documentation is expected to take several months, pending credit approval.
The Fundo Soberano of Angola has shown interest in investing less than 10% in Minbos' fully paid ordinary shares, with the remaining funds directed into their Mauritian subsidiary, Phobos.
Minbos Resources is an exploration and development company engaged in the nutrient supply and distribution business.
The company is focused on the development of a primary phosphate and nitrogen-based fertiliser business that stimulates agricultural production and promotes food security in Angola and the broader Congo Basin.