Minbos Announces Strategic Agreement with Angolan Sovereign Wealth Fund
Minbos Resources Limited (ASX) has signed a pivotal Subscription Agreement with the Fundo Soberano de Angola (FSDEA), securing a US$10 million strategic investment. This funding fully finances Phase-1 construction of the Cabinda Phosphate Project, a key initiative aimed at supporting Angola's agricultural sector and enhancing food security.
Phase-1 Construction to Begin Shortly
The first tranche of funds is expected soon, enabling Minbos to finalize and execute the Civils contract. This phase includes essential infrastructure work such as earthworks, access roads, drainage, and concrete foundations. Mobilization is set to commence once the initial funds are received, marking a significant step forward in the project timeline.
A Strategic Partnership for Economic Growth
This partnership aligns with FSDEA’s vision of fostering projects that drive Angola’s sustainable economic development. By investing through its Mauritian subsidiary ASF Yova Mining Holding Ltd, FSDEA acquires a 22% interest in Minbos' Mauritian subsidiary, Phobos Ltd, without diluting existing Minbos shareholder interests in future ventures.
Phased Funding to Ensure Smooth Execution
The US$10 million investment will be delivered in three tranches:
- US$6.40 million: To execute the Civils contract.
- US$2.43 million: Upon contractor mobilization and governance alignment.
- US$1.17 million: Upon finalizing project insurances and supplier quotations for long-lead items.
These structured payments reflect a commitment to ensure smooth and timely progress of the Cabinda project.
Strong Support for Angola’s Agricultural Future
Managing Director Lindsay Reed expressed excitement about the partnership, stating, “This investment underscores FSDEA’s trust in our project and its potential to transform Angola's agriculture sector. It demonstrates a shared commitment to sustainability, food security, and economic resilience.”
FSDEA Chairman Armando Manuel echoed these sentiments, highlighting the strategic importance of the project in integrating Angola into global value chains and driving regional economic growth.
Outlook and Next Steps
Minbos continues to advance non-dilutive debt funding arrangements with institutions such as IDC and Banco BAI, backed by the Angolan Credit Guarantee Fund. Updates on the Cabinda Phosphate Project’s progress and funding milestones are expected in the coming weeks.
