Minbos in A$20m merger with Angolan partner
PERTH (miningweekly.com) – ASX-listed junior Minbos has signed a nonbinding term sheet to buy its Angolan joint venture (JV) partner, Petril Phosphate, in a transaction valued at about A$20-million.
Under the proposed merger of equals, Minbos will acquire all shares in Petril in a mostly scrip transaction, that will result in Petril and Minbos shareholders each owning about 50% of the enlarged company.
Petril shareholders will also be paid a structured royalty on any future production from Petril’s Lucunga project. In addition to the Lucunga project, Petril also owns the Pedra de Feitico project, on the banks of the Congo river.
Minbos and Petril jointly own the Cabinda phosphate project, which is currently undergoing a bankable feasibility study. The 391.3-million-ton project, with an estimated ten-year mine life, spreads across the southern part of the Republic of Congo, the north-western part of Angola and the western part of the Democratic Republic of Congo.
The two companies originally considered a merger in 2015, which only considered the Cabinda project, and Minbos CEO Lindsay Reed said on Monday that the new transaction was fundamentally different than the previous merger proposal, and greatly simplified the ownership structure for both Minbos and Petril shareholders.
“With just over a year since we ceased the last set of merger discussions, a lot of the outstanding issues have now been addressed,” Reed said.
The new transaction is subject to the completion of a due diligence, execution of a definitive agreement, and approval from Minbos shareholders.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation