Minbos raises funds to accelerate Cabinda phosphate project in Angolaafricabusinesscommunities

February 23, 2021

Minbos Resources announced it has received firm commitments from sophisticated investors to subscribe for a placement of approximately 91.25 million fully paid ordinary shares (Shares) in the Company at an issue price of AU$0.08 per Share to raise gross proceeds of AU$7.3 million (Placement).

As part of the Placement, the Company also offered investors one (1) free option to acquire a Share (exercise price $0.15; expiry date 2 years) for every two (2) Shares subscribed (Placement Options). CPS Capital Group Pty Ltd (CPS Capital) acted as Lead Manager to the Placement and it was significantly oversubscribed.

Lindsay Read, CEO, Minbos: “We are delighted by the strong support for the placement which has fully funded our Definitive Feasibility Study and provided capacity for the Company to move on growth opportunities that our project makes possible. In particular, we will now have capacity to progress key project items ahead of project finance draw down. With its mix of ESG, impact and strong mining economics, the Cabinda Phosphate Project is one of the most exciting and rewarding projects I have been involved in. We look forward to delivering for shareholders, stakeholders and Angola.”

The Placement was strongly supported by Directors and existing shareholders and introduced a number of new high net-worth investors and institutions to the Minbos register. The Placement Shares will be issued in a single tranche using the Company’s existing capacity with 55,448,684 shares to be issued under LR 7.1 and 35,801,316 shares to be issued under LR 7.1A. However, the Placement Options will be issued subject to receipt of shareholder approval in general meeting.

The Company anticipates holding a shareholder meeting in late March 2021 (Shareholder Meeting) to seek approval for the issuance of the Placement Options. In addition, subject to approval at the Shareholder Meeting, Mr Peter Wall, Mr Paul McKenzie and Mr Graeme Robertson (all directors of the Company) are participating in the Placement for a total of AU$200,000, demonstrating their confidence in the Company. Funds raised from the Placement will be used for working capital requirements and to further DFS activities for the Cabinda Phosphate Project, Angola.

CPS Capital acted as Lead Manager to the Placement. The Company will pay CPS Capital a management fee of 2% of the total gross proceeds of the Placement, plus GST and a placing fee of 4% of the total gross proceeds of the Placement, plus GST. Subject to shareholder approval in general meeting, CPS and/or its nominees, will also receive 20,000,000 options, on the same terms as the Placement Options at an issue price of AUD$0.0001 each (“Corporate Options”). CPS will also receive a monthly corporate advisory fee of AUD$6,000.00, plus GST, for a minimum of 12 months.

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