Minbos Resources (ASX:MNB) announced a financial boost for its African operations, having formally signed a US$16 million debt facility agreement with the Industrial Development Corporation of South Africa.
The capital injection is earmarked to commence the Phase-2 construction activities for the Cabinda Phosphate Fertiliser Plant in Angola.
Phase-2 construction will encompass crucial structural, mechanical, electrical, and instrumentation works, advancing the project towards operational status.
According to the company, the next steps involve finalising security agreements.
The processes are subject to approval from shareholders of Phobos—a Minbos subsidiary backed by the Fundo Soberano de Angola (the Sovereign Wealth Fund of Angola)—as well as shareholders of related Angolan entities, Soul Rock and Minbos Resources.
Minbos anticipates having all security measures in place to facilitate the first drawdown of funds by the end of March. The timeline aligns with the expected completion of Phase-1 construction.
To ensure project alignment, Acting CEO Rob Newbold and CFO Mr. Blair Snowball recently met with key stakeholders in Luanda.
Meetings with the National Agency for Mineral Resources confirmed that contradictory information regarding the expiry date on the existing mining licence will be rectified.
A joint task force has now been established to pursue additional funding options to satisfy the project’s ongoing working capital requirements.
At the time of reporting, Minbos Resources' share price was $0.025.