Minbos Resources Limited: Phosphate Fertilizer Project Update

Minbos Resources Limited: Phosphate Fertilizer Project Update

Minbos Resources Limited (ASX: MNB), an Australian company specializing in phosphate fertilizer, has released a comprehensive update on its activities in Angola, specifically regarding the Cabinda Phosphate Fertilizer Project. This update outlines significant advancements in construction, finance, and community engagement, reflecting Minbos' commitment to developing a robust agricultural sector in the region.

Early Clearing and Site Preparation

Early clearing at the Subantando Fertilizer Plant site has been completed, marking a crucial step in the project's timeline. The Subantando site, strategically located near the main highway between the Cácata mine site and Cabinda City, is only 16km from the Port of Cabinda. This proximity is expected to facilitate smooth logistics for the project.

Stage 1 Construction Phases

The construction for Stage 1, targeting a production capacity of 187,500 tonnes per annum (tpa), has been divided into two phases:

Phase 1: The design for civil engineering works, including earthworks and drainage, is complete. Contracts have been agreed upon and are ready to sign, with a formal tender process underway.

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Phase 2: The design for structural, mechanical, electrical, and process control is substantially complete, with packages ready for pricing and contracting. The mining contract is also ready for tender once construction commences.

CEO and CFO Visit to Angola

In late April and early May, Minbos' CEO and CFO traveled to Angola to progress discussions with offtake partners, banks, and government institutions. These discussions focused on finalizing funding requirements and concluding IDC Conditions Precedents.

Bank Debt Financing and Credit Applications

The Cabinda Fertilizer Project has been deemed suitable for local bank debt financing, with the project now at the appraisal stage. Major local banks and government institutions have expressed strong interest in funding the construction and working capital requirements. Minbos is also applying for credit under Angola's Central Bank policy, Aviso No. 10, which offers favorable borrowing terms for projects critical to the economy, such as agriculture. Additionally, the Company is seeking guarantees from the State Credit Guarantee Fund (FGC) to expedite the credit application process.

Stage 2 Expansion Plans

Minbos is accelerating plans for Stage 2 expansion, with design work already underway. The expansion includes a 60tph crusher and surge bin to increase capacity. A larger burner, already on site, will boost dryer capacity. To support this expansion, the Minbos Agronomy and Marketing team has visited Porto de Caio, currently under construction, with commissioning expected in the first half of 2026. Discussions with the port authorities have focused on ensuring sufficient capacity for pre-season requirements.

Field Trials and Demonstrations

The agronomy team has completed all designs, budgeting, and planning for mining and delivering 100 tonnes of phosphate ore for demonstration trials with Grupo Carrinho and a large-scale farm in Uige Province. Additionally, sugar trials have been established at the SARIS farm in the Republic of Congo, alongside three other trials in Cabinda Province for peanuts, cassava, and beans.

Community Centre and Water Supply

A site for a Minbos-funded community center has been identified near a community water bore. An inspection is underway to determine its suitability for the planned infrastructure. A second water bore has been installed in the local community of Luciese, with the pump and piping connected to provide drinking water and other community needs.

Cácata People Association

The commission formed to create the Cácata People Association has finalized its work, and the final documents have been filed with the relevant government department. Minbos continues to provide support in the final stages of this process.

Compliance and Forward-Looking Statements

Minbos confirms that no new information or data materially affects the information in the original market announcement. Forward-looking statements in this release involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied.

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