12/07/2022 - 14:36

Minbos backed for $25m

12/07/2022 - 14:36

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Minbos Resources is set to raise $25 million in a placement backed by billionaire Liang Feng, with the parties also set to research the potential for phosphate and green ammonia projects.

Minbos backed for $25m
Minbos Resources has laid plans for a green ammonia project in Angola. Photo: Minbos Resources

Minbos Resources is set to raise $25 million in a placement backed by billionaire Liang Feng, with the parties also set to research the potential for phosphate and green ammonia projects.

Subiaco-based Minbos said it received firm commitments to the tune of $25 million from institutional and sophisticated investors primarily to fund the construction of the Cabinda phosphate project in Angola.

The company is seeking to establish a phosphate rock mine and granulation plant to produce feedstock for the local agricultural sector.

Funds will also go towards technical studies for a 'green ammonia' project, called Capanda, also in Angola.

Shares were offered at 11 cents each representing an 18.5 per cent discount on the company’s last trade price and a 22 per cent discount on its five-day volume-weighted average price.

Around $15 million of the total raised came from HongKong Hayson Holding - a holding company owned mostly by Chinese billionaire Liang Feng, who co-founded and chairs anode materials manufacturer Shanghai Putailai New Energy Technology.

Further funds were raised from private company Hoston Investments and investment services group Longmarch Principal Holding.

As well as financial backing, the three companies are set to partner with Minbos in a strategic cooperation agreement to potentially develop phosphate and large-scale green ammonia projects.

Broadly, the arrangement is set to conduct broad research on potential offtake partners and project feasibility.

Minbos also signed a $US25 million ($A37 million) debt term sheet with Long March Capital, which is also tipped to go towards the Cabinda project.

Minbos chief executive Lindsay Reed said the company was approached by investors after announcing plans for a green ammonia project.

“While the Company is very pleased with the strong demand for the placement, we are even more excited to work with our new partners on ferro phosphate and lithium ferro phosphate for batteries and large-scale green ammonia projects,” Mr Reed said.

Minbos shares last traded at 14 cents.

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