Minbos Secures US$36M Financing, Starts Construction at Cabinda Fertilizer Plant

A New Chapter Begins at Cabinda

Minbos Resources Limited (ASX:MNB) has marked a pivotal milestone with the commencement of construction at its flagship Cabinda Phosphate Fertilizer Project in Angola. This development signals a transition from planning to execution, underpinned by a strong financial foundation and strategic partnerships that promise to reshape the company’s trajectory.

The December 2024 quarter was transformative, with Minbos securing a US$10 million equity investment from the Angolan Sovereign Wealth Fund (FSDEA), alongside a US$14 million loan facility from the International Development Corporation (IDC) of South Africa. Complementing these was a US$12 million term loan term sheet signed with Banco Angolano de Investimentos (Banco BAI), positioning the project with a total financing package of approximately US$36 million.

Strategic Financing and Strong Backing

These funding agreements are more than just capital injections; they represent a vote of confidence from reputable institutions in Minbos’ vision and the potential of the Cabinda project. The initial tranche of US$6.4 million from FSDEA has already been received, enabling immediate progress on construction activities.

Banco BAI’s involvement through Soul Rock Ltd, a Minbos subsidiary, is a critical piece of the financing puzzle, with loan agreement negotiations underway following the signing of the final term sheet. Meanwhile, the IDC facility is contingent on satisfying certain conditions, including the execution of the Banco BAI loan and meeting of offtake requirements, underscoring the interconnected nature of these partnerships.

Construction Momentum with Grupo Arliz

On the ground, Minbos has engaged Grupo Arliz, a Portuguese-based civil construction group, to execute the civil works. Construction is actively underway at the Subantando site, with earthworks, access roads, drainage, and concrete foundations progressing. This hands-on activity is a tangible sign of the project’s momentum and Minbos’ commitment to delivering long-term value.

The company also reported that the fertilizer plant components are already stored on-site, ready for assembly, which should accelerate the timeline once foundational works are complete.

Capital Raising and Corporate Strength

Complementing project financing, Minbos completed a A$4.4 million placement during the quarter, issuing approximately 62.9 million shares at A$0.07 each. This capital will support ongoing project development, export partnerships, feasibility studies on green ammonia, and general corporate expenses.

Additionally, a binding underwriting agreement facilitated the exercise of 30 million unlisted options, injecting a further A$1.5 million. Notably, key insiders, including Managing Director Lindsay Reed and former directors, participated in exercising options, signaling internal confidence in the company’s prospects.

Export Potential and Infrastructure Synergies

Looking beyond construction, Minbos is positioning the Cabinda project as a strategic export hub. The nearby deepwater Porto de Caio port, scheduled for completion by December 2025, will enable efficient shipping of phosphate fertilizer to markets across Asia, Africa, and South America. The port’s capacity to handle vessels up to 40,000 deadweight tonnes aligns well with Minbos’ export ambitions.

Minbos has also signed a Memorandum of Understanding with Foskor, South Africa’s largest phosphoric acid producer, indicating potential export sales and collaboration opportunities. What's more, design engineering to double the plant’s capacity is complete, with stage-2 expansion capital estimated at under US$4 million, leveraging existing equipment rated for higher throughput.

Financial Position and Outlook

As of 31 December 2024, Minbos held A$12.89 million in cash with no debt, a strong position given the scale of its development activities. Operating and investing cash outflows reflect the intensive construction and project advancement phase, while financing inflows have replenished liquidity.

The company’s capital structure includes nearly one billion fully paid ordinary shares and a mix of listed and unlisted options, providing flexibility for future funding needs.

Overall, Minbos’ December quarter report paints a picture of a company transitioning decisively from development to delivery, backed by solid financial support and strategic partnerships that enhance its growth prospects.