First commitments received for AU$4.4 million placement and stage 2 export progress

Funds raised are to be used to progress the Cabinda Fertilizer Project, export partnership opportunities, progressing Lobito distribution hub studies, green ammonia feasibility and partnership progression and general corporate working capital.

Cabinda Phosphate export potential

The Deepwater Port at Caio remains on track for physical completion in December 2025. The port is located only 16km from the

Minbos plant and can easily service 30 000 tpy vessels to match requirements for potential customers in Asia and South America.

Minbos has previously signed a Memorandum of Understanding (MoU)4 with Foskor, South Africa’s largest phosphoric acid producer based in Richards Bay, for potential export sales from Cabinda.

Engineering to double capacity of the plant has been completed and the capital is estimated at less than US$4M, with most of the equipment purchased from FEECO already rated at 60 tph, allowing stage 2 production to commence when built.

Details of the placement

Under the terms of the placement, the company will issue 62 857 142 shares at an issue price of AU$0.07 per Share. Participants in the placement will also receive two free attaching options (options) for every three Shares subscribed for under the placement, resulting in a total of 41 904 761 options being issued. Each option will be exercisable at AU$0.10 and have an expiry date of two years from the date of issue.

The shares and options will be issued via two separate tranches, as follows:

Tranche 1: 57 857 142 shares and 38 571 428 options. The issue of the Tranche 1 shares and options will utilise the company’s available placement capacity under Listing Rule 7.1.

Tranche 2: 5 000 000 shares and 3 333 333 options. Tranche 2 represents director participation in the placement of AU$350 000. The company will be seeking shareholder approval for the issue of the tranche 2 shares and options at a General Meeting to be held by the company (date yet to be determined).

All shares issued under the placement will rank equally with existing shares on issue.

CPS Capital Group are acting as lead manager to the placement. They will receive a 6% fee on all funds raised under the placement as well as 4 million lead manager options which are being issued on the same terms as the company’s MNBOB listed options which are currently on issue and are exercisable at AU$0.07 and expire on 3 July 2026. The issue of the lead manager options will utilise the company’s existing placement capacity available under Listing Rule 7.1.

An investor presentation and Appendix 3B for the proposed issue of securities will follow this announcement.

Read the article online at: https://www.worldfertilizer.com/potash/16122024/first-commitments-received-for-us44-million-placement-and-stage-2-export-progress/