08/03/2013 - 12:13

Minbos announces $5.5m in new finance

08/03/2013 - 12:13

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Minbos announces $5.5m in new finance

Phosphate miner Minbos Resources has secured $5.5 million in debt finance to boost working capital as it continues its search for a cornerstone investor to back its African projects.

Minbos announced today it had completed separate financing arrangements with New York-based investment house Lind Partners and its own management to secure the funds.

Under the agreement with Lind, Minbos will receive $375,000 initially, while the investment group will invest between $75,000 and $200,000 in monthly subscriptions over the next two years, up to a maximum of $4.975 million.

A separate funding arrangement will see director David Reeves and chief financial officer James Carter provide $500,000 to the company via a convertible note facility.

The convertible notes will be executable at a premium of 50 per cent to the 20 day volume weighted average price of Minbos shares, with a  12 per cent interest rate.

“The agreements ensure that Minbos can continue to progress its strategic partner process that seeks a cornerstone investor in Minbos to advance the feasibility studies on both our Kanzi project in the DRC and our Cacata project in Angola,” managing director Scott Sullivan said.

“It also demonstrates the confidence Minbos’ executive has in our projects and the future growth potential of the company.”

Minbos shares have gained 8.5 per cent today on the ASX, trading at 6.4 cents. The company’s stock was trading around 20 cents as recently as September last year.

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