Minbos Advances Cabinda Project with US$4.8M First Loan Drawdown
Minbos Resources has secured a crucial milestone by signing the final security agreement for its US$16 million IDC loan and submitting a first drawdown request of US$4.8 million to fund ongoing construction at Cabinda.
- Final security agreement signed with IDC in Luanda
- First drawdown request for US$4.8 million submitted
- Phase 1 civil works completed; Phase 2 contract near finalisation
- Additional US$5.48 million loan secured from Banco de Fomento Angola
- Full funding in place to complete Cabinda Phosphate Fertilizer Project
Critical Financing Milestone Achieved in Angola
Minbos Resources Limited (ASX:MNB) has crossed a significant hurdle in its Cabinda Phosphate Fertilizer Project by signing the final security agreement for its US$16 million loan facility with the Industrial Development Corporation of South Africa (IDC). The signing took place in Luanda, Angola, with Minbos CEO Rob Newbold and CFO Blair Snowball present alongside IDC representatives, completing the legal registration necessary to unlock funds.
With this agreement in place, Minbos has submitted its first Facility Utilisation Request for 30% of the IDC facility, approximately US$4.8 million. These funds are earmarked for settling the final invoice of the Phase 1 civil construction contract, which is now fully complete, and for mobilisation costs ahead of Phase 2 construction. The release of funds remains subject to IDC's final processing but is expected imminently.
Phase 2 Construction Contract Nears Execution
The Phase 2 construction contract, valued at around US$13.8 million, covers the remaining build stages through to dry commissioning. Minbos reports that contract drafting and negotiations are in their final stages, with execution anticipated within the coming week. This next phase will be pivotal for advancing the project towards operational readiness.
Minbos' recent progress builds on its earlier announcement of securing the US$16 million IDC loan facility in March 2026, which was a key step in financing the project’s next development stages. The company’s ability to now draw down funds reflects the removal of previous financing conditions, a notable development given earlier delays attributed to shareholder disputes and administrative hurdles in Angola, which had previously slowed project momentum.
Full Project Funding Secured with Angolan Bank Loan
Complementing the IDC facility, Minbos signed a term sheet on 1 May 2026 for a 5 billion kwanza (approximately US$5.48 million) loan with Banco de Fomento Angola (BFA). This loan, previously announced in April, ensures that the remaining costs to complete construction are fully funded. Together, the IDC and BFA financing packages provide a comprehensive funding solution for the Cabinda project’s construction phases.
These financing milestones come after a period of strategic leadership changes and financing challenges, with Rob Newbold appointed as Acting CEO earlier in 2026 to steer the company through these hurdles. The successful drawdown request and near-finalisation of Phase 2 contracts mark a tangible step towards resuming construction activity at the site, which had been stalled for some time.
Minbos’ progress also aligns with the company’s earlier efforts to secure capital, including a planned share purchase plan to bolster cash flow and shareholder approvals for the IDC loan agreements in its Angolan subsidiaries, signalling broad stakeholder support for the project’s advancement.
Bottom Line?
Minbos has unlocked critical funding to push the Cabinda project into its next construction phase, but execution of the Phase 2 contract and timely receipt of funds remain key near-term catalysts.
Questions in the middle?
- Will IDC’s final processing of the drawdown request proceed without delay?
- How swiftly can Minbos execute the Phase 2 construction contract and mobilise resources?
- What impact will full funding have on the project’s overall timeline and cost control?
