Minbos Resources Limited (ASX:MNB) Secures US$12 Million Funding
Funding Package Details
Minbos Resources Limited (ASX:MNB) has signed a final term sheet with Banco Angolano de Investimentos, S.A. (Banco BAI) for a US$12 million loan. The loan is structured as a seven-year term loan with a 7.5% interest rate. Notably, there will be no interest payments in the first year and principal repayments will commence after two years.
Project Impact and Future Steps
The funds will facilitate the construction of the Cabinda Phosphate Fertilizer Project, aiming to supply essential phosphate fertilizer for the 2025 planting season. This financing, combined with an existing US$14 million loan facility and a US$10 million equity investment from the Angolan Sovereign Wealth Fund, positions Minbos to advance both Stage-1 construction and the subsequent Stage-2 expansion of the plant.
CEO Comments
Minbos CEO, Michael Waring, expressed gratitude for the support from Banco BAI, emphasising the significant role it plays in developing agriculture in the region. “This funding is crucial to expedite our project, ultimately aiming to bolster local food production,” said Waring.
Next Steps
Minbos will now work on finalising the loan agreement with Banco BAI and satisfying remaining conditions for additional funding. The timeline includes beginning Phase 2 of construction soon, leveraging the existing infrastructure already in Angola.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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