Funding Delays and Shareholder Buyouts Test Minbos’ Phosphate Project Progress

• Minority shareholder buyout underway to consolidate local equity
• IDC loan restructured with increased amount and extended term
• Early mining to commence following Mining Investment Contract transfer
• Fertiafrica partnership secured for local fertilizer granulation
• Subantando Fertilizer Plant achieves major construction milestones

Funding and Ownership Consolidation

Minbos Resources Limited (ASX, MNB) has taken significant steps this quarter to streamline its financing and ownership structure for the Cabinda Phosphate Project in Angola. The company is actively negotiating the buyout of two minority Angolan shareholders in its local subsidiary Soul Rock Lda, a move that will increase Minbos’ equity stake and simplify the path to securing construction funding from Banco BAI. While this buyout has delayed the loan drawdown, Minbos remains confident that it will not impact the overall funding from Banco BAI or the Industrial Development Corporation (IDC).

Loan Restructuring Enhances Financial Flexibility

The IDC has approved a restructuring of its US$14 million loan facility, increasing it to US$16 million and extending the term from five to seven years. Notably, the borrowing entity has shifted from the Angolan subsidiary to Phobos Ltd, the Mauritian parent company, enabling the project to negotiate better international supplier terms and defer Angolan sales taxes until production commences. This restructuring is expected to reduce the overall funding requirement by approximately US$4 million, providing Minbos with greater financial flexibility as construction progresses.

Early Mining and Strategic Partnerships

Following the anticipated transfer of the Mining Investment Contract (MIC) to Minbos Resources Lda, the company is poised to begin early mining operations. This milestone aligns with the recently signed Heads of Agreement with Fertiafrica, part of the Noble Group, to granulate and distribute phosphate-based fertilizers locally. Fertiafrica’s Benguela facility will become Angola’s first integrated granulation hub, leveraging Minbos’ phosphate rock to produce tailored NPK blends under the “Primeiro Inside” brand. This partnership not only supports local agricultural development but also strengthens Minbos’ market presence in Angola.

Construction Progress and Export Initiatives

Construction at the Subantando Fertilizer Plant has advanced with the successful pouring of the main structural concrete slab, marking a key milestone. Additional groundwork, including foundation slabs, soil improvement, and utility installations, has been completed, setting the stage for vertical construction once funding is secured. Concurrently, Minbos is preparing an 80-tonne bulk sample for export trials in Brazil, timed with the expected December 2025 opening of the Port of Caio in Cabinda, which will facilitate future export sales.

Financial Position and Outlook

As of 30 September 2025, Minbos holds a cash balance of A$3.87 million with no debt, reflecting prudent financial management amid funding delays. The company anticipates a capital raise in the coming quarter to support operational cash flows, while construction investments will continue to be funded through loan facilities. With strong broker support indicated, Minbos appears well-positioned to maintain momentum on its phosphate fertilizer project despite the complexities of local shareholder negotiations and financing adjustments.

Bottom Line?

Minbos’ strategic funding and operational moves set the stage for a pivotal phase in its phosphate project, but execution risks remain as shareholder buyouts and capital raises unfold.

Questions in the middle?

• When will the minority shareholder buyout be finalized and how will it affect project timelines?
• How will the restructured IDC loan terms impact overall project economics and supplier negotiations?
• What is the expected scale and timing of export sales following the Brazil trial shipment?