Ann: Cabinda Phosphate Fertilizer Project Funding Update, page-171

It is interesting Next Investors have made the point that the Carrinho Offtake agreement will lead to the Bank & SWF finance. In the recent article they said:

“Our view is that the way the conditions are structured, MNB will probably have to finalise this one (offtake) before any of the others get done, i.e without a signed offtake the banks might be unwilling to lend...... We think the offtake will be the first key catalyst - giving other financiers certainty on forward revenues.”

To me this makes perfect sense especially for the Banks - the SWF would be a long term investment & probably not waiting for the offtake agreement, though it would help.

Remember NI (S3 consortium) are paid by Minbos to do these promotions, they would have spent some time with Minbos management before writing the article so would have a very good handle on what’s happening.

Off subject but another snippet I found interesting was that they had insurers valuing their equipment & wanting to insure it for $21m (mining.com interview). I believe at the AGM there was mention they were looking to use this equipment as security for the Bank loan. The FGC guarantee to 70% so they’d need something for that extra 30%. $21m would certainly cover it & the Banks would certainly want it insured.

IMO get the offtake contracted & the rest of the pieces will fall into place.