Minbos Secures US$21.48M Funding and Advances Cabinda Phosphate Construction

Cabinda Project Fully Funded for Construction Completion

Minbos Resources Limited (ASX:MNB) has effectively locked in the financing needed to complete its flagship Cabinda Phosphate Fertilizer Plant in Angola. The company announced a US$16 million debt facility with South Africa’s Industrial Development Corporation (IDC) and a US$5.48 million loan facility from Banco de Fomento Angola (BFA), which is now ready for signing. Together, these facilities provide sufficient capital to finish construction, a milestone underscored by the recent oversubscribed Share Purchase Plan that raised $1.336 million, including $90,000 from directors.

This combined funding package follows earlier announcements and confirms Minbos’ strategy to secure local and international financing to advance the project. The company also received a US$484,500 investment from the Angolan Sovereign Wealth Fund (FSDEA) into its subsidiary Phobos Ltd, reinforcing local stakeholder support and providing a non-dilutionary capital boost. As a result, Minbos ended the quarter with approximately A$1.36 million in cash and no debt, with expectations that all future construction costs will be met via the IDC and BFA loan drawdowns in the coming weeks. This financial position builds on the company’s earlier funding progress, including the US$5.48 million debt facility from BFA reported in mid-April US$5.48 million loan secured.

Construction Progress and Next Phase Preparations

On the ground in Cabinda, Phase-1 construction is on track for completion by May 2026, encompassing all civil works such as roads, drainage, and building foundations. The company reported full completion of slabs and foundations for the production area, alongside 2,000 square meters of bituminous road sections, visually documented in recent site images. These developments mark tangible progress toward operational readiness.

Minbos has commenced negotiations for Phase-2 construction contracts covering structural, mechanical, electronic, and instrumentation works. The company aims to sign these contracts in tandem with the first drawdown from the IDC facility, signalling a shift from preparatory groundwork to the more technical stages of plant construction. This aligns with the company’s Q2 milestones, which include finalising loan security registrations and initiating tender processes for mine operations, crucial steps toward project ramp-up.

Cost Management and Corporate Financial Discipline

In response to the capital-intensive nature of the project, Minbos and its board have conducted a comprehensive review of expenditure on both the Cabinda Project and the Perth head office. The review identified potential cost savings of at least 20% over the next two quarters, reflecting a disciplined approach to preserve capital while maintaining essential execution capabilities. This cost control is particularly relevant given the company’s net cash outflow of A$1.67 million from operating activities during the quarter and A$790,000 spent on property, plant, and equipment.

The company’s cash flow dynamics also include $127,000 in payments to related parties, covering directors’ fees and management services. With listed options expiring in July potentially raising up to $7.1 million, Minbos retains several funding levers but remains cautious, prepared to consider additional equity raises if necessary. These financial maneuvers follow a pattern of measured capital management seen in earlier quarters, including a $1 million capital raise via a Share Purchase Plan earlier this year $1.336 million Share Purchase Plan.

Outlook and Upcoming Catalysts

Looking ahead, Minbos is focused on completing the registration and signing of security for the IDC loan, with only FSDEA approval pending, expected by May. The first drawdown from both IDC and BFA facilities is anticipated shortly thereafter, enabling the company to accelerate Phase-2 construction and commence mining operations. The initiation of the mine contractor tender process and securing working capital funding are also key near-term priorities.

While the company expresses confidence in meeting its operational and financial objectives based on current funding strategies and cash flow forecasts, the timing and execution of these milestones will be critical. Market watchers will note that Minbos is navigating the classic challenges of project financing and construction in an emerging market context, balancing local stakeholder engagement, currency considerations, and capital discipline.