Minbos Resources is actively seeking new funding avenues for its Cabinda Phosphate Fertilizer Project in Angola.
The company is currently evaluating the requirements for its existing multi-million-dollar loan facilities, with the aim of securing additional capital to support the construction of the plant.
Discussions with the Angolan Sovereign Fund
Minbos Resources is in talks with the Angolan Sovereign Fund regarding a possible equity investment of $10-15 million. Simultaneously, the company is negotiating with an undisclosed emerging market fund for co-investment, expecting proposals from both parties by mid-July.
Upon securing the necessary funding, Minbos Resources will initiate construction and honor its sales agreement with the Angolan firm Grupo Carrinho.
Approval from the IDC
In April, the Industrial Development Corporation of South Africa (IDC) approved a $21.5 million debt facility to cover most of the $24 million construction costs. However, the IDC has now amended its loan conditions, requiring Minbos Resources to obtain a $10 million term loan instead of a working capital facility.
Collaboration with Banco BAI
To fulfill this new requirement, Minbos Resources is collaborating with Banco BAI, one of Angola’s largest banks. Following site visits and evaluations by both Banco BAI and the Angolan Credit Guarantee Fund (FGC), Minbos Resources is awaiting a decision on the loan approval. The proposed terms include a five-year loan with a 7.5% interest rate and a 2% guarantee fee.
Partnership with Foskor
Moreover, an MoU signed last month with the mining company Foskor aims to assess the commercial viability of Minbos Resources’ phosphate rock, with potential exports from Porto de Caio anticipated in December 2025.