DRC - ASX-listed Minbos Resources has entered into a binding agreement with African Phosphate (AFP) to dispose of its rights in the Kanzi project.
Under the terms of the agreement, AFP has also acquired all the historical technical data and study reports for a total consideration of US$200 000.
Minbos Resources is focused on phosphate ore within the Cabinda Province of Angola and the adjoining areas of the far western DRC. Through its subsidiaries and joint ventures, the company is exploring over 400 000 ha of highly prospective ground hosting phosphate ore.
The only condition precedent on the agreement is the receipt by Minbos of the consideration that is due within 30 days. The cash proceeds on the disposal of the Kanzi project will be utilised for working capital purposes and to progress the Cabinda project.
In terms of the agreement, Minbos unconditionally and irrevocably releases all of its rights whatsoever in respect of the Kanzi project licences and the Phosphalux SPRL Joint Venture agreement upon completion. The Kanzi project consists of three active licences and a further six exclusive options.
Minbos CEO Lindsay Reed says: “As part of the disposal of the Kanzi project it was extremely important for Minbos that the new JV partner had the capability to take the project forward and had the support of our former partners in the DRC. Minbos will continue to focus on its Angolan phosphate interests."
AFP CEO Jason Brewer adds, “We are committed to accelerating the development of the Kanzi project and in working with our new partners in the DRC. With Minbos focused on the development of their Cabinda project, we have been presented with a great opportunity to build on the work they have completed and advance the project towards production”.
AFP is an African focused phosphate mining and development company, which is acquiring and looking to develop advanced phosphate assets throughout Sub-Sahara Africa in partnership with one of South Africa’s largest and oldest fertiliser companies.