"The Company is working to satisfy the Loan Facility conditions precedent and unlock the funding to begin construction on the Project."
Your comment is a little misleading. They are in discussions with the Angolan Sovereign Fund (FSDEA) for an equity injection ranging from US$10-15 million. The FSDEA is conducting site visits and due diligence, while simultaneously, the Company is engaging with an emerging market fund. Both funds are expected to present proposals to their investment committees by mid-July.
Initially, IDC required a working capital facility, but it has adjusted its condition to require a term loan of US$10 million instead.
The FGC is the Credit Guarantee Fund of Angola. Its primary role is to provide guarantees to banks and other financial institutions to encourage lending to sectors deemed crucial for economic development, such as agriculture, small and medium-sized enterprises, and other strategic industries. By offering these guarantees, the FGC helps mitigate the risk for lenders, thereby promoting increased access to credit and financial services for businesses and projects within Angola.
Satisfying the conditions of the IDC or any similar entity takes time. I'm not sure what more people can expect at this point. I understand sentiment is at an all-time low, but if you had faith in the company before, this announcement looks promising.
MNB Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
