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.
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