Minbos Resources Limited (ASX:MNB) Secures $4.4M Placement
Funding Details
Minbos Resources Limited (ASX:MNB) has secured firm commitments from sophisticated and professional investors for approximately AU$4.4 million via a placement. The placement will involve the issue of about 62.9 million fully paid ordinary shares at AU$0.07 per share. An estimated AU$350,000 will be allocated for director participation, pending shareholder approval.
The funds will be directed towards advancing the Cabinda Phosphate Project, exploring green ammonia feasibility, and supporting Lobito distribution plans, as well as general corporate working capital.
Strategic Investments
The company recently entered into significant financing agreements, securing US$10 million from the Angolan Sovereign Wealth Fund and establishing term sheets with Banco Bai and the IDC for up to US$26 million in debt financing. These funds will primarily be allocated for constructing the Cabinda Fertilizer Plant. The combination of these loan facilities will facilitate both Stage-1 construction and the planned Stage-2 expansion of the plant.
Export Readiness
The deepwater Port at Caio is projected to be completed by December 2025, enhancing export capabilities. Minbos Resources is actively pursuing export sales opportunities, complementing its local fertilizer distribution efforts. The company has previously signed a Memorandum of Understanding (MOU) with Foskor for potential export sales from Cabinda.
Management Fee Structure
CPS Capital Group is managing the placement and will receive a 6% fee on funds raised alongside the issuance of 4 million lead manager options. The options will align with the existing terms of Minbos’ listed options, further incentivising the management team to drive the company’s growth strategy.
Motley Fool contributor Matt Burgess 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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