npv$937m vs mkt cap $2m, page-5

Interesting announcement..

MINBOS TO DIVEST ITS ASSETS IN THE DEMOCRATIC REPUBLIC OF
CONGO(“DRC”)

Minbos Resources Limited (“Minbos” or “Company”)(ASX:MNB) will focus on the development of its
outstanding Angolan phosphate assets after announcing its intention to divest its assets in the DRC.

Minbos has taken the first steps in the sale process,serving First Right of Refusal on its joint venture
(“JV”) partner Allamanda Trading Ltd, asset out in the articles of the JV company Phosphalux SPRL.

Allamanda has until 1 October 2013 to respond to Minbos as to whether it wishes to exercise its right
on the terms offered by Minbos.

Minbos, through its 100% owned subsidiary Agrim SPRL, entered into a JV with Allamanda in August 2012 to explore and develop the Kanzi Phosphate project in the Western DRC region which is contained within three active exploration licences. It also has excusive options to six other tenements in the DRC. Minbos currently holds a 49% economic interest in the project.

To date the Company has completed a Scoping Study which has confirmed very positive economic returns and has delineated a JORC compliant Indicated Resource of 58.5Mt at 14.2% P2O5.

If Allamanda does not take up its First Right of Refusal,then Minbos is entitled under the statutes to
sell its economic interest to a third party.

Scott Sullivan, Minbos’ Managing Director and Executive Chairman commented:

“Minbos has two projects in development, both at the Bankable Feasibility Stage in what remains a very constrained capital market. The Board has made a strong commitment to Angola which has momentum and significant upside. We believe that focusing our efforts and resources on the development of our high grade Cacata project in Angola is in the best interests of shareholders.”

..................

Kanzi resource is 58.5mt out of a potential resource of 370.1mt, with Angola holding the remaining 300mt...

So diversifying and concentrating Angola looks a good call IMO..

Kanzi NPV is a massive $626m...

IRR 58%

Our interest 49% =

$307m

Now with our mkt cap @ just $2m....

there is potential that this sale could be for multiples of the current sp...

Let's not forget...DRC has further upside, with the Fundu Nzobe deposit with estimated resource of 70Mt @ 15% P2O5 (based on historical exploration)...

So NPV for DRC could easily double or more if the resource is proven (58mt to 128mt) ...

NPV would be c$1300m

So the question is...

How much is our 49% interest worth ?

If i was Allamanda and i got offered first refusal.. to take MNB's 49% interest on the cheap...(c10% of their interest) then I'd be a fool not to..

$626m x 49% x 10% =

$30m

$30m would get them 100% ownership in an asset with an NPV of $626m and with significant upside to double this...

For MNB shareholders this would be 15x current mkt cap :-)

Then we have the funds to prove up the 300mt resources in Angola which would give an NPV of c$3 billion

Interesting times ahead