Minbos to acquire Congo Basin phosphate

THE BOURSE WHISPERER: Minbos Resources has entered into a conditional agreement to acquire a large-scale potash licence located in the Cabinda Province of the Republic of Angola.

“This is an exceptionally exciting transaction for Minbos,” Minbos Resources executive chairman Peter Richards said in the company’s announcement to the Australian Securities Exchange.

“Not only does it provide an attractive entry into one of the most exciting potash basins in the world, but the unique combination of the already defined high-grade and potential Direct Shipping Ore phosphate resources and the potential of defining large, high grade potash resources within the same licence area sets Minbos apart from its peers and bodes well for a very exciting future for the company.”

Minbos said the Dinge potash licence complements the company’s existing phosphate projects in the Cabinda Province as well as those it holds in the western Democratic Republic of Congo.

The company considers the acquisition will place it in a position from which it will be able to capitalise on the increasing demand for fertilisers.

Minbos aims to be a supplier to the world fertiliser market.

Under the agreement, Minbos will acquire 75 per cent of the Dinge potash licence from Alum Industrial, a private Angolan mineral exploration company, and provide funding to take the project through to feasibility study.

The licence area covers 785 square kilometres, and lies within the Congo Basin, which hosts Elemental Minerals’ Sintoukola project as well the MagIndustries Corp Makolo project.

A large proportion of the Dinge licence area overlaps Minbos’ Cabinda phosphate projects and in many areas such as Chivovo, the potash mineralisation underlies the phosphate mineralisation that has already been identified by Minbos.

“The occurrence of phosphate and potash mineralisation within the same licence areas is an exciting development for Minbos,” the company said.

“It immediately exposes the company to two of the most important fertiliser products and in the medium to long term provides the potential for shared infrastructure such as ports, roads etcetera.”

The Dinge project is supported by data from 13 historical exploration wells that were drilled for potash near the town of Dinge.

There are also a number of additional holes that were drilled for oil in the Dinge licence area, with data revealing intersections of potash salt formations.
Minbos has access to a 2D seismic survey that was completed throughout 2010 to 2011.

The company has carried out a review of available technical data, which it said demonstrated potentially economic grades of potash being intersected in the licence area.