Minbos Resources Ltd (ASX:MNB, OTC:MNBRF, FRA:OMB) has signed the final security agreement required under its US$16 million loan facility with the Industrial Development Corporation of South Africa, clearing the way for the first drawdown request.

The company has submitted a Facility Utilisation Request for 30% of the facility, equivalent to about US$4.8 million, with funds expected to be received in coming weeks subject to final IDC processing.

The agreement was signed in Luanda, Angola, on May 26, 2026, with Minbos CEO Rob Newbold and CFO Blair Snowball attending alongside authorised IDC signatories.

The signing completed the key steps required before drawdown under the IDC facility.

The agreement comes about just weeks after Minbos received a US$5.48 million, or 5 billion kwanza, debt term sheet from Banco de Fomento Angola, adding to the aforementioned US$16 million facility.

Together, the facilities provide sufficient funding to complete construction of the Cabinda Phosphate Fertilizer Plant.

Cabinda Phosphate Fertilizer Project, located in Cabinda Angola, with Phase 1 construction works now completed.

The company has also received shareholder approval for the IDC loan terms from its Angolan subsidiaries, Soul Rock Lda and Minbos Resources Lda, both of which passed resolutions in favour of the IDC Loan Agreement and related security arrangements.

In addition, the Angola Sovereign Fund has agreed to invest a further US$484,500 in Minbos subsidiary Phobos Ltd, representing its non-dilutionary pro-rata contribution to match funds invested by Minbos over the past 6 months.

Minbos is now concluding negotiations for the Phase 2 construction contract, targeting mobilisation in Q2 to coincide with the first facility drawdown. This phase will lead through to commissioning of the plant.

The company has also identified and implemented project and corporate cost reductions to lower the overall funding requirement.

Next steps include first drawdown of the IDC facility, commencement of Phase 2 construction at the Cabinda Fertilizer Plant, signing and first drawdown of the BFA loan agreements, securing working capital finance for mine and processing operations, and commencing the mine contractor tender process ahead of contract award.

Cabinda Phosphate Fertilizer Project, maintenance shed area.

Funding to restart construction activities

The first drawdown will be used to pay the final invoice under the Phase 1 civil construction contract, where works have been fully completed, and to cover mobilisation costs for the Phase 2 construction contract.

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Phase 2, valued at about US$13.8 million, covers the remaining construction stages through to dry commissioning.

Contract drafting and negotiations are in the final stages, with execution expected in the coming week.

Minbos said there were no changes to the key facility terms announced on March 2, 2026.

The company has also signed a Banco de Fomento Angola term sheet for 5 billion kwanza, or about US$5.48 million. Together with the IDC facility, Minbos said the remaining costs to complete construction of the Cabinda Phosphate Fertilizer Project are fully funded.

The company described completion of the IDC security arrangements and submission of the first drawdown request as a major step towards recommencing construction and delivering the Cabinda project.

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