Minbos Resources (ASX:MNB) will continue to ready a bankable...

Minbos Resources (ASX:MNB) will continue to ready a bankable feasibility study at its Cabinda phosphate project in Angola despite a merger attempt with a local partner hitting an impasse.

The BFS will focus on the project’s high-grade Cacata deposit, which has demonstrated potential to support at least 10 years production using a simple “scrub and screen” operation.

A scrub and screen project is expected to significantly reduce the capital and operating costs as well as development lead times.

The momentum comes despite Minbos and its Angolan joint venture partner Petril Phosphates Ltd failing to negotiate terms for a merger that would have ceded 100% ownership of Cabinda to Minbos in exchange for Petril taking a 50% stake in the Perth-based developer.

The principal terms requiring agreement were the escrow conditions for existing and incoming shareholders, with Petril proposing that Minbos’ major shareholders be escrowed until completion of the BFS.

The negotiations were further complicated by the difficulties of combining a public listed and private company as well as the different stakeholder and business cultures.

Minbos recently announced that it has signed a Letter of Intent with the Port of Caio to export up to 800,000 tons of rock phosphate per annum.