Minbos Secures US$21.48M to Complete Cabinda Fertilizer Plant

Strategic Funding Milestone Achieved for Cabinda Plant

Minbos Resources Limited (ASX:MNB) has taken a significant step towards completing its Cabinda Phosphate Fertilizer Plant by securing a US$5.48 million debt facility from Banco de Fomento Angola (BFA), one of Angola’s largest commercial banks. This new funding, combined with the previously announced US$16 million loan from the Industrial Development Corporation of South Africa (IDC), fully finances the construction phase of the project.

The BFA facility, backed by Angola’s central bank credit program, carries a 7.5% annual interest rate over a seven-year tenor and includes security arrangements such as a mortgage on land and plant assets. The loan terms reflect growing institutional confidence in the Cabinda Project and align with Angolan government initiatives to boost domestic industrial and agricultural development.

Shareholder Approvals and Additional Investments

Critical approvals for the IDC loan were secured at recent general meetings of Minbos’ Angolan subsidiaries, Soul Rock Lda and Minbos Resources Lda, clearing a major hurdle in the project’s financing structure. Meanwhile, the Angola Sovereign Fund (FSDEA) has committed a further US$484,500 to Minbos’ subsidiary Phobos Ltd, matching the company’s recent capital injections and signalling continued local institutional support.

These developments build on the earlier IDC facility announcement, which marked a key milestone for the project’s advancement. The IDC loan’s approval process and shareholder resolutions were detailed in the company’s March announcement, confirming the groundwork for a robust funding package. The combined facilities now provide Minbos with the financial certainty to push ahead with construction and commissioning activities. This follows the earlier US$16 million IDC facility announcement that set the stage for this funding completion.

Construction Progress and Cost Management

Construction at the Cabinda site has persisted through the wet season, with Phase-1 nearing completion. The company is in the final stages of negotiating contracts for Phase-2, targeting mobilisation in the second quarter to coincide with the first drawdown of the IDC facility. This phase will culminate in commissioning the fertilizer plant, a critical step towards operational readiness.

Alongside securing finance, Minbos has implemented a rigorous review of project and corporate expenditures, achieving over 20% reductions in non-project overheads compared to the previous year. These cost-saving initiatives aim to enhance capital efficiency and preserve cash flow during the transition from construction to production.

Next Steps and Financing Outlook

Looking ahead, Minbos plans to finalise and sign the BFA loan agreements and execute the first drawdowns from both the BFA and IDC facilities. The company will also seek working capital financing for mining and processing operations and initiate the tender process for mine contractors, with contract awards expected to follow.

While the funding package marks a pivotal moment, the timeline for working capital arrangements and mine contractor appointments remains uncertain. The company’s ability to maintain momentum through these next phases will be critical to meeting construction and commissioning targets.