Minbos Raises A$4 Million to Accelerate Cabinda Phosphate Project

Placement Secures Critical Funding for Mining and Production

Minbos Resources (ASX:MNB) has successfully raised A$4 million through a placement priced at A$0.015 per share, representing a 31.8% discount to the last traded price. The capital injection is designed to propel the Cabinda Phosphate Project in Angola towards near-term production milestones, including mining commencement and fertiliser plant commissioning. The placement attracted strong support from existing and new sophisticated investors, with the board and management committing to invest approximately A$550,000, pending shareholder approval.

Advancing Angola's Only Fully Integrated Phosphate Fertiliser Project

The Cabinda Phosphate Project stands out as Angola’s sole fully integrated phosphate resource and fertiliser operation, boasting a JORC-compliant resource of 8.4 million tonnes at 30.1% P2O5 and 4.7 million tonnes of proven and probable ore reserves. The project benefits from shallow, low-strip ratio mining close to market, with logistical advantages including proximity to the Porto do Caio deepwater port, targeting first export shipments in the first half of 2027.

Minbos has demonstrated strong agronomic credentials through over 70 field trials across Angola, showing yield improvements of up to 60% with its locally sourced phosphate rock, which is well suited to acidic soils prevalent in the region. This positions the project to significantly reduce Angola’s dependence on imported fertilisers, supporting the government’s target of fertiliser self-sufficiency by 2030.

Use of Funds Focused on Key Development Milestones

The proceeds from the placement will be allocated to a range of critical activities including the transfer of the Mining Investment Contract and Mining Licence, satisfying conditions for the first drawdown under the Banco de Fomento Angola (BFA) financing facility, and establishing working capital for mining operations and fertiliser inputs. Additionally, funds will support grade control drilling, mine mobilisation, ongoing grower and customer trials, and general corporate costs.

This capital raise complements existing financing secured from South Africa’s Industrial Development Corporation (IDC), which has already provided a US$16 million loan facility with an initial drawdown of US$4.8 million, and a US$5.4 million term sheet from BFA. These combined facilities underpin the project’s construction and operational phases, with Phase 2 contracts underway for plant equipment installation and commissioning.

Commercialisation and Market Engagement Progress

Minbos is actively advancing its commercialisation strategy with a dual-market approach targeting both domestic granulated fertiliser sales and phosphate rock exports. The company has secured letters of intent from six domestic anchor customers and is engaged with multiple prospects for export volumes, pending final product testing. A memorandum of understanding with FertiAfrica has been executed for toll granulation in southern Angola, enhancing the project’s distribution capabilities.

The construction of the Subantando fertiliser factory in Cabinda is progressing steadily, with site clearing, foundations, and primary structures completed. Ongoing Phase 2 works include process equipment installation and utility tie-ins, supported by local employment of approximately 180 workers during construction.

Outlook: Execution and Delivery in Focus

CEO Rob Newbold emphasised the company’s commitment to execution following the placement: "With this funding secured, our focus is now on execution. Over the coming months we expect to deliver a number of key milestones, including commencement of mining, progress on our funding initiatives, advancement of the processing plant and completion of customer trials." The company aims to demonstrate tangible progress toward first revenues and long-term value creation for shareholders and stakeholders alike.