Minbos raises $7.3 million to fully fund DFS

Minbos Resources Limited (ASX:MNB) has received firm commitments from sophisticated investors to subscribe for a placement of approximately 91.25 million fully paid ordinary shares at an issue price of $0.08 per share to raise gross proceeds of $7.3 million.
Funds raised from the Placement will be used for working capital requirements and to further DFS activities for the Cabinda Phosphate Project, Angola.
Consequently, this is an important development in terms of derisking the Cabinda Project and progressing towards the all-important DFS which is expected to be completed by November.
Minbos has already released an impressive scoping study that implies an after-tax net present value ranging between about US$159 million and US$260 million.
Bang for buck, this is one of the best mining projects on offer at the moment given the nominal anticipated upfront capital expenditure of about $25 million.

Improved commodity prices should see enhanced DFS economics
Expect the DFS to provide significant share price momentum as it will place more certainty around the financial metrics which appear to have improved due to commodity price movements since the scoping study was completed.
Notably, phosphate fertiliser prices have doubled since Minbos submitted its bid to international tender.
As the first primary fertiliser plant to be constructed in middle Africa, Minbos holds an important first-mover position which will strengthen its competitive edge.
The group’s strategic partnership with the International Fertiliser Development Centre will assist the company in targeting a small landholder sector.
The transformational social impact of the Cabinda Project has brought it under the spotlight of international investors that are focused on ESG (environmental, social, governance) enterprises, and this also will provide Minbos with a head start in terms of project financing.
Commenting on the placement and highlighting the Cabinda Project’s robust financial metrics and ESG appeal, chief executive Lindsay Read said, "We are delighted by the strong support for the placement which has fully funded our Definitive Feasibility Study and provided capacity for the company to move on growth opportunities that our project makes possible.
"In particular, we will now have the capacity to progress key project items ahead of project finance drawdown.
"With its mix of ESG impact and strong mining economics, the Cabinda Phosphate Project is one of the most exciting and rewarding projects I have been involved in.
"We look forward to delivering for shareholders, stakeholders and Angola.”
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