The board now has a high chance of delivering their first project together. The phosphate project is on the verge of entering the construction stage having passed almost all milestones over the last few years. According to the Quarterly report, only around US$10mill for capex remains to be funded and raising that and a working capital loan of US$10mill, together with converting the binding offtake MOU to a binding offtake contract is all that remains to draw on the IDC loan and enable construction. Then they will have their track record when advancing the green ammonia project. They picked a good project to prove themselves on. It is a very low capex project with little competition on a low cost fertiliser with a big local need. The phosphate rock is well suited to local conditions for a lower cost, easy to produce fertiliser.
"Financing Updates
Post reporting period, Minbos received credit committee approval from the InternationalDevelopment Corporation of South Africa (IDC) for a US$14 million (~AU$21.5 million)debt facility.The IDC facility will cover the majority of the ~US$24M (subject to final pricing of Phase 2construction). The remaining US$10M required to complete construction andcommissioning is expected to be sourced from an Angola bank and/or fromdevelopment focussed investors, with which discussions are currently underway.Approval of the IDC facility has allowed the Company to access financing opportunitiesnot previously available to it. Moreover, agricultural development in Angola has becomea government-wide priority. In the recent State of the Nation address, Angolan PresidentJoao Lourenco, spoke to the importance of the Cabinda Phosphate Project, which hasdirectly enabled discussions with Angolan institutions.
MNB Price at posting:
5.6¢ Sentiment: Buy Disclosure: Held
