Minbos Secures $4.36M, Advances $16M IDC Loan, and Cuts Phosphate Costs
Minbos Resources advances key financing deals and unveils a cost-cutting plan for its Cabinda Phosphate Project, while forming a strategic joint venture to develop green ammonia production targeting 2028.
- Final stages of $16M IDC loan agreement nearing financial close
- Accelerated Cabinda Phosphate Project plan reduces upfront capex by ~$20M
- Binding joint venture with Talus Renewables for Capanda Green Ammonia Project
- Secured $4.36 million capital raise via placement and share purchase plan
- Cash position of $2.9 million with zero debt at quarter end
Financing Momentum Builds
Minbos Resources Limited (ASX – MNB) has reported significant progress in its December 2025 quarterly update, highlighting the near completion of a $16 million loan agreement with the Industrial Development Corporation (IDC). This financing milestone is poised to provide critical capital as Minbos moves closer to construction and production phases of its flagship projects.
Additional debt facilities with Banco de Fomento Angola (BFA) and Banco BAI (BAI) are advancing, with approvals and structural changes expected in the coming months. These combined funding efforts underscore Minbos’ commitment to securing a robust financial foundation for its growth trajectory.
Cost-Efficient Phosphate Production
In a strategic pivot, Minbos has unveiled an updated development plan for its Cabinda Phosphate Project that could accelerate production start-up while slashing initial capital expenditure by approximately $20 million. This revised approach involves processing uncrushed, dewatered phosphate rock, which also reduces operating costs by around $17 per tonne during early production.
The introduction of Moisture Reduction Systems (MRS) to lower product moisture content from over 20% to about 6% before screening and transport is a key innovation driving these savings. While this accelerated plan offers near-term benefits, Minbos continues to pursue its full-scale beneficiation and granulation strategy to meet longer-term market demand for premium phosphate and NPK fertilizers through its Fertiafrica partnership.
Green Ammonia Joint Venture Targets 2028
Minbos has taken a major step into the green energy space by signing a binding Heads of Agreement with Talus Renewables Inc. to jointly develop the Capanda Green Ammonia Project in Angola. This 50 – 50 joint venture will leverage up to 100 MW of low-cost renewable hydropower, positioning the project as a cost-competitive supplier to premium export markets in Europe, Japan, and South Korea, as well as regional fertilizer and mining sectors.
The modular green ammonia technology from Talus promises lower upfront capital intensity and faster development timelines compared to traditional plants. Minbos aims for first production by 2028, contingent on completing a Definitive Feasibility Study and winning a major European government-backed export tender.
Capital Raising to Support Growth
Following the quarter, Minbos secured firm commitments to raise $3.36 million through a placement to institutional and sophisticated investors, alongside a $1 million Share Purchase Plan for existing shareholders. The capital raise, priced at $0.026 per share with free-attaching listed options, will fund working capital, feasibility studies, engineering, and green ammonia tender preparations.
With $2.9 million cash on hand and no debt at the end of December, Minbos is well-positioned to maintain momentum across its phosphate and green ammonia projects throughout 2026.
Bottom Line?
Minbos is strategically positioning itself at the intersection of phosphate production and green ammonia innovation, but execution risks remain as financing and project milestones approach.
Questions in the middle?
- Will Minbos secure final approvals and execute all loan agreements on schedule?
- How will the accelerated phosphate project plan impact long-term production quality and volumes?
- What are the key risks and timelines for the Capanda Green Ammonia Project’s export tender success?
