Minbos Resources (ASX: MNB) has advanced its Cabinda Phosphate Fertiliser Project by executing the final IDC security agreement for its US$16 million debt facility in Luanda, Angola.
Following this, the company submitted its first facility utilisation request for 30% of the facility, amounting to approximately US$4.8 million.
These funds are earmarked for the payment of the final invoice under the Phase 1 civil construction contract, as well as mobilisation costs for the Phase 2 construction contract.
The company confirmed that Phase 1 civil works are now fully completed.
Negotiations for the Phase 2 construction contract, valued at approximately US$13.8 million, are in their final stages, with execution expected in the coming week.
Cabinda Project Fully Funded
The company has confidently stated that all remaining costs to complete construction of the Cabinda Phosphate Fertiliser Project are now fully funded.
In addition to the IDC facility, a term sheet with Banco de Fomento Angola (BFA) for 5 billion kwanza (US$5.48 million) was signed on 1 May 2026.
The US$16 million IDC facility is a crucial component of Minbos Resources' project financing strategy.
Shareholder approvals for the IDC security were obtained from Soul Rock Lda and Minbos Resources Lda on 30 March 2026.
Addressing Mining Rights Concerns
Minbos has reaffirmed that its Mining Investment Contract (MIC), executed in December 2020, remains valid and enforceable, providing 23 years of mineral rights.
Clerical inconsistencies in the Mining Licence (ML), issued in March 2021, are administrative in nature and do not affect the mineral rights under the MIC or impact project financing.
Furthermore, a prior delay in securing funding from Banco BAI was attributed to corporate administrative activities for the Angolan subsidiary Soul Rock Lda and local shareholder dynamics.
The company stated that progress with both BFA and IDC financing has remained unaffected by these administrative and shareholder matters.
Outlook
Minbos Resources has achieved critical funding milestones with its first drawdown request for the Cabinda project, now stating all remaining construction costs are fully funded.
While addressing past concerns regarding project financing and mining rights, the company is poised to recommence construction activities, contingent on final contract execution and drawdown processing.
Previous quarterly reports had indicated a tight liquidity runway, with an estimated 0.8 quarters of funding available at 31 March 2026, underscoring the importance of these facility drawdowns.
The company has also been proactive in managing its finances, implementing non-project overhead reductions of more than 20% compared to the prior year.
