Phosphate developer Minbos Resources has received firm commitments to raise A$25-million through a share placement to fund development at its Cabinda project, in Angola.
The ASX-listed Minbos on Tuesday said that it would place more than 227.2-million shares, at a price of 11c each to institutional, sophisticated and professional investors.
The placement will be undertaken in two tranches, with the first tranche consisting of more than 131.4-million shares, to be issued under Minbos’ existing placement capacity. The second tranche placement of more than 95.8-million shares would be subject to shareholder approval at a meeting scheduled for August.
The share placement will be cornerstoned by a A$15-million investment from a syndicate of investors, including an entity controlled by the chairperson of the world’s largest battery anode producer.
Minbos has also signed a strategic cooperation agreement with the cornerstone investors to develop ferro phosphate, lithium ferro phosphate and large-scale green ammonia projects, with Minbos committing to long-term offtake of 100 000 t/y of high-grade phosphate rock at agreed market rates.
“Following the announcement of the company’s hydropower concession and its plans for the Capanda green ammonia project, the company was approached by a syndicate of investors looking to partner in developing some of the most exciting green energy projects globally,” said CEO Lindsay Reed.
“While the company is very pleased with the strong demand for the placement, we are even more excited to work with our new partners on ferro phosphate and lithium ferro phosphate for batteries and large-scale green ammonia projects – backed by their strong commitment to zero- carbon green energy projects.”
In addition to the capital raise, Minbos has also signed a $25-million non-binding debt term sheet with Long March Capital for arrangements of a total debt facility. The debt will become available in tranches of $5-million, with first draw down on financial close.
The facility would have a five-year term and interest rates would be agreed upon.
The facility will be used to fund the capital expenditure for the Cabinda phosphate project.
Minbos in March this year settled on a design for the Cabinda phosphate fertiliser plant, based on an initial production capacity of 150 000 t/y with capability to expand up to 450 000 t/y. Based on current estimates, commissioning is expected in the first half of 2023.
Funds from the capital raise will also go towards technical studies for the Capanda green ammonia project, which will get under way immediately.