Minbos has provided an updated information on financing and the Cabinda Fertilizer Project

Minbos has provided an updated information on financing and the Cabinda Fertilizer Project. The Company has received an Indicative Term Sheet for a US$14 million (debt) loan facility from the Industrial Development Corporation of South Africa Ltd (IDC).

The loan facility proposes a competitive interest rate and tenor, subject to a number of conditions precedent which are customary for a transaction of this nature, including due diligence with site visits scheduled for this month.

The IDC is a South African development finance institution established in 1940 to promote economic growth and industrial development to grow South Africa’s industrial capabilities.

Engagement with IDC may also provide other commercial opportunities, for example potential offtake for Stage 2 production (>200 000 tpy) of beneficiated phosphate rock with South African customers.

The Company remains engaged with a number of complementary financing options which include coordination with existing stakeholders.

The Company is confident it can build its Phosphate Fertilizer Project at a significant discount to the budgeted CAPEX announced in its definitive feasibility study (DFS).

The Company has released several updates since the DFS was released in October 2022 which will see a reduction in capital costs and operating costs and accelerate ramp up to nameplate capacity, all of which are expected to improve the base case project NPV and include: simplified flowsheet has identified capital savings of US$10 million over the DFS1, with only US$26 million expenditure remaining until commencement of production.

MOU’s signed and under negotiation cover the majority of Stage 1 production (187 500tpy nameplate capacity) with a faster ramp-up which is expected to bolster early cashflow and project NPV. The new plant site (Subantando) offers significant transport savings, the distance from the mine to plant is reduced from 76km to 36km and the distance from the plant to the port is reduced from 28km to 16km with reduced costs to hold and maintain site.

Minbos CEO, Mr Lindsay Reed, said: “The submission of a term sheet for project finance from an established financial institution affirms Angola’s standing for foreign investment and demonstrates support with SADC for projects with a strong social impact.”

Read the article online at: https://www.worldfertilizer.com/project-news/18102023/minbos-has-provided-an-updated-information-on-financing-and-the-cabinda-fertilizer-project/