17/03/2015 - 12:06

Minbos shares surge on merger talks

17/03/2015 - 12:06

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Shares in Minbos Resources surged on news it has entered into an agreement to sell half of the company to joint venture partner, Petril Projects, in exchange for full ownership of the Cabinda phosphate project in Angola.

Minbos shares surge on merger talks
Drilling activities at Minbos' phosphate project in Angola.

Shares in Minbos Resources surged on news it has entered into an agreement to sell half of the company to joint venture partner, Petril Projects, in exchange for full ownership of the Cabinda phosphate project in Angola.

Minbos chief executive Lindsay Reed said merger discussions were initiated on a mutual recognition that development schedules, project financing and value realisation would be enhanced by single ownership.

Petril and Minbos currently own an equal 50:50 interest in the Cabinda project.

In a statement, Minbos said the remainder of the proposed transaction terms were confidential and under negotiation.

“There is no guarantee that the negotiations between the parties will result in a binding transaction,” the company said.

“The proposed transaction will require shareholder approval and other regulatory approvals.”

Shares in Minbos were 25 per cent higher at 0.5 cents per share at 12pm.

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