PERTH (miningweekly.com) – ASX-listed junior Minbos Resources has enacted a takeover of its Angolan joint venture (JV) partner in the Cabinda phosphate project, Petril Phosphates, agreed upon in December last year.
“Minbos is excited to finally execute the definitive sale agreement with the Petril shareholders. The merger will consolidate the ownership structure of the Cabinda project and simplify engagement with financiers and customers to finalise offtake and financing arrangements for the project later this year,” said Minbos CEO Lindsay Reed.
In exchange for their holding in Petril, shareholders will receive more than 2.07-million Minbos shares, and will be issued with a further 384.9-million conditional shares upon the achievement of a number of targets, including the Angolan government replacing the current Cabinda exploration permits with new permits, the completion of the merger, and the renewal of the Lucunga project concession for a further 20-year period.
The agreement will result in Petril and Minbos shareholders each holding around 50% of the enlarged Minbos, with the enlarged group holding full ownership of the Cabinda project, a 70% interest in the Lucunga project, and full ownership of the Pedra de Feitico rock phosphate project.
The agreement had previously been valued at around A$20-million.
The completion of the transaction was subject to a number of conditions, including a due diligence by Petril, as well as third-party, shareholder and regulatory approvals.