Minbos Faces Critical Shareholder Vote Amid Funding and Execution Challenges

• Binding commitments for $3.36 million placement at $0.026 per share
• Proposed $1 million Share Purchase Plan for existing shareholders
• New debt financing route with Banco de Fomento Angola pending approval
• Placement includes director participation and attaching listed options
• Funding supports transition to full project execution in early 2026

Funding Boost for Cabinda Project

Minbos Resources Limited has announced a significant capital raise, securing binding commitments to raise $3.36 million through a placement priced at 2.6 cents per share. This equity injection is complemented by a proposed $1 million Share Purchase Plan (SPP) aimed at existing Australian and New Zealand shareholders, ensuring broad participation on the same terms. Together, these moves are designed to underpin the company’s ongoing construction activities and operational needs for its flagship Cabinda Phosphate Project in Angola.

The placement includes participation from Minbos directors Graeme Robertson and Valentine Chitalu, who have applied for shares and options subject to shareholder approval. Investors will receive one free attaching listed option for every share subscribed, exercisable at 4 cents and valid for three years, introducing a new class of listed securities to the company’s capital structure.

Navigating Debt Financing Challenges

Alongside the equity raise, Minbos is advancing its debt financing strategy by engaging a third Angolan bank, Banco de Fomento Angola (BFA). This development comes after delays with Banco BAI, which required a complex restructuring of Minbos’ Angolan subsidiary into a public limited company. BFA has passed the bank’s risk review and is awaiting credit committee approval, with a term sheet expected by December and potential drawdown in the first quarter of 2026.

The loan under consideration falls under Angola’s Aviso No. 10 economic development regulations, offering predefined terms such as a 7.5% interest rate and the possibility of a guarantee from the Credit Guarantee Fund of Angola. This guarantee mechanism, previously secured for Banco BAI financing, could reduce risk and improve loan conditions.

Strategic Implications and Next Steps

Minbos’ dual approach of raising equity and securing debt financing reflects a pragmatic response to the complexities of project funding in emerging markets. The fresh capital will provide working capital flexibility and ensure continuity as the company finalizes stage 1 construction activities. Alpine Capital Pty Ltd is managing the placement, receiving a 6% fee and options as part of their engagement, subject to shareholder approval.

Looking ahead, Minbos plans to convene a General Meeting to approve the issuance of placement options and director participation. The SPP offer document is expected to be dispatched to eligible shareholders shortly, with the offer closing in early January 2026. These steps are critical as Minbos aims to transition into full project execution and capitalise on the growing demand for phosphate fertilisers in Angola.

Minbos’ broader strategy includes developing a nutrient business in Angola, linking farmers with inputs and markets to expand agriculture beyond the country’s traditional oil sector. The Cabinda Phosphate Project, alongside partnerships like Fertiafrica and the Capanda Green Ammonia project, positions the company at the forefront of this agricultural transformation.

Bottom Line?

Minbos’ successful capital raise and new debt financing avenue set the stage for critical project milestones in 2026, but shareholder approvals and credit committee decisions remain pivotal.

Questions in the middle?

• Will the Banco de Fomento Angola loan receive timely credit committee approval to meet project timelines?
• How will shareholder voting impact the issuance of placement options and director participation?
• What are the potential risks if the SPP does not reach its $1 million target or is scaled back?