Minbos Resources (ASX:MNB) has announced its execution of a deal with Angola’s wealth fund for US$10M to advance its phosphate project.

The Cabinda Phosphate Project (CPP) is located only 16km away from a seaport in a country the company describes on its website as “hungry for fertilizer.”

An already-completed Definitive Feasibility Study (DFS) clocked the project with a 39% IRR; US$203M overall value and low CapEx requirements.

Under its new deal with the Angolan fund – called Fundo Soberano de Angola (FSA) – first phase construction will commence at CPP following first tranche payments from FSA.

Those phase one works include earthworks, access road creation, drainage and the installation of concrete foundations. Fertilizer produced further down the line is to be provided to local farmers “along the Lobito Corridor.”

Other funding talks are still ongoing with “IDC and with Banco BAI, supported by the Angolan Credit Guarantee Fund.”

“This investment not only demonstrates our commitment to supporting the growth and resilience of the agriculture sector in Angola, but also aligns with [FSA’s] mission to generate long-term returns while contributing to the sustainable economic development of the country,” Minbos MD Lindsay Reed said.

“The Cabinda Phosphate Project constitutes an important piece in the development of the national capacity to provide the necessary inputs to boost agricultural productivity in Angola.”

MNB last traded at 5.3cps.

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