Minbos Resources Limited confirms the completion of the sale of its interests in the Madagascar rare earths project to ALS Limited


Minbos Resources Limited has confirmed the completion of the sale of its interests in Madagascar Rare Earths Project to ALS (Hong Kong) Limited. Proceeds from the sale (A$2.46 million) are to be applied towards the completion of the Definitive Feasibility Study (DFS) for the Cabinda Phosphate Project and studies for the Capanda Green Hydrogen-Ammonia Project.

The Capanda Green Hydrogen-Ammonia project is poised to become another key value driver for the company as the Cabinda phosphate project progresses towards completion of the DFS.

Following the May 10, 2022 announcement, the company can now confirm that it has received an updated resolution from RNT-EP, the Angolan power grid operator.

This updated resolution confirms the key business parameters of the Power Supply Agreement and replaces the Memorandum of Understanding (MOU) that the company was previously expecting by mid-month (the MOU now expected after a initial technical discussion).

Key Business Parameters:

Concessional pricing

• Initially 100 MW at US$0.004 (0.4c) kilowatt hour for 5 years then 0.8c kilowatt hour for 20 years.

• Next 100 MW at 0.015 USD (1.5 c) per kilowatt hour for 25 years.

Main commitments

Following receipt of the amended resolution and as part of the negotiations on the proposed memorandum of understanding, the company has committed to provide milestones and key studies to RNT-EP both with respect to the Green project Hydrogen-Ammonia and, more generally, in the Angolan Fertilizer Project & Agricultural Sector.

These commitments include:

• First year budget and schedule for a market assessment study for the green hydrogen and ammonia plant project.

• Technological and engineering partnership agreement to be signed with a privileged technological partner.

• Study on transport logistics to analyze the cost of transporting materials for the green hydrogen and ammonia plant and the cost of transporting nitrogen fertilizers to the agricultural regions of Angola.

• Inventory of raw materials of Angolan secondary ingredients for nitrogen fertilizers, including sulphur, limestone, dolomite, phosphate, potassium.

• Consultation of agricultural stakeholders with nutrient users, importers, distributors and agronomists to identify the most appropriate nitrogen fertilizers, climate, soil fertility, available raw materials and agricultural production forecasts.

• Soil sampling to be carried out in collaboration with the Ministry of Agriculture and covering approximately 10 million hectares of agricultural land.

Following the company’s announcement that it had obtained an agreement in principle from the RNTEP for the supply of 200 MW of zero-carbon1 hydroelectric power and the progress of the proposed green hydrogen and ammonia project, the company has received a number of unsolicited inquiries from potential technicians, removal and investment partners with a variety of opportunities, including:

• Recognition that soaring natural gas prices are squeezing industrial sectors and the attractiveness of preferential zero-carbon hydro pricing opening up the opportunity for the Green Hydrogen-Ammonia project.

• Interest in long-term supply of ammonium nitrate for industrial purposes (mainly drilling and blasting activities) in the Africa region.

• Increased interest in the Green Hydrogen-Ammonia investment theme and its ability to improve sustainable agricultural and food security.

The company remains focused on advancing the opportunity and has begun meeting with suitable technology and investment partners. In addition to the above, the company has received initial inquiries about the possibility of using phosphate from the Cabinda phosphate project for the production of lithium iron phosphate batteries. Lithium Iron Phosphate (LiFePO4 or LFP) batteries offer multiple advantages over lead-acid and other lithium batteries. Longer life, no maintenance, extremely safe, lightweight, improved discharge and charge efficiency, just to name a few.

The quality of the phosphate proposed to be produced from the Cabinda Phosphate Project (quality and impurities) has attracted initial interest from potential global battery partners and established battery producers.

Commenting on the above, Lindsay Reed, CEO, said:

“Our hard work and persistence in Angola is starting to pay off, with multiple potential business opportunities on the table that we believe will quickly outpace our phosphate project in terms of shareholder return. Our positioning with the Green Hydrogen-Ammonia project puts the company ahead of most, if not all, other ASX-listed peers, giving Minbos a significant advantage in terms of time, infrastructure spend and electricity pricing. These benefits cannot be underestimated.

Read the article online at: https://www.worldfertilizer.com/nitrogen/31052022/minbos-resources-limited-confirms-the-completion-of-the-divestment-of-its-interests-in-madagascan- rare-earths-project-to-als-limited/

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