- Shares in Minbos Resources (MNB) have spiked after the company executed the mineral investment contract for the Cabinda Phosphate Project
- Under the contract, the company will explore and exploit phosphate rock within the Cabinda Phosphate Project’s concession area
- The contract also formalises Minbos’ engagement with Angolan Government Ministries and the province of Cabinda
- This will allow the company to complete approvals, access agreements, offtake agreements, and contracts for the Caio Granulation Plant
- Minbos Resources is up 50 per cent, and is trading for $0.10 per share
Shares in Minbos Resources (MNB) have spiked after the company executed a mineral investment contract for the Cabinda Phosphate Project.
As its name suggests, the phosphate project is located in the Cabinda province of Angola. Angola’s Ministry of Mineral Resources and Petroleum awarded the Cabinda phosphate concession to Minbos in March 2020, by international public tender.
Since then, the company has been working to bring the project into production in order to meet the African continent’s rising demand for fertilisers. Cabinda is the first of the two phosphate projects awarded by Angola’s Ministry to execute its mineral investment contract (MIC).
Under the contract, Minbos is approved to explore, conduct feasibility studies on, and exploit the phosphate rock within the Cabinda Project’s concession area. Its key terms include a three per cent royalty rate on phosphate rock sales, and 25 per cent income tax, which will apply after an eight-year tax-free period.
The contract also formalises the company’s engagement with Angola’s government ministries and the province of Cabinda. This will allow Minbos to complete approvals, land and port access agreements, offtake agreements, and an investment contract for the Caio Granulation Plant.
As required by the contract, the company has submitted a technical economic and financial feasibility study for the Cácata Mine. This confirms that the project will move to the exploitation phase in 2021.
Minbos’ CEO, Lindsay Reed, called the execution of the mineral investment contract an important milestone and real value catalyst for the company.
“We are now able to move beyond a definitive feasibility study and commence implementation planning with government and stakeholders,” he said.
“Middle Africa has 170 million people and vast areas of arable land, but not a single fertiliser production facility – this project cannot advance fast enough to keep up with the expected demand,” he added.
Minbos Resources is up 50 per cent and trading at $0.10 per share at 12:10 pm AEDT.