Minbos Resources (ASX: MNB) has received a high level of interest from potential strategic partners to participate in the development of its phosphate rock projects in Angola and the Democratic Republic of Congo.
The initial phase of the tender process has revealed substantial interest particularly from major downstream fertiliser producers and trading companies across Asia and Europe.
Minbos said the short list includes highly credible global players that would bring significant market expertise as well as financial strength to the partnership.
Several indicative offers have been received to provide funding to complete Bankable Feasibility Studies for the Angolan and DRC phosphate rock projects, and also to provide long term phosphate offtake agreements.
Due diligence and site inspections have commenced under confidentiality agreements for each of these potential partners.
The first of the unconditional final offers are expected by late January 2013, while remaining final offers are likely to be received during February and March 2013.
Minbos also received an unsolicited, non-binding offer for an equity stake in the company and an associated offtake agreement from an interested party.
This party was part of Minbos’ formal strategic partner process, but chose to separate from this process and submit an unsolicited, unconforming and highly conditional offer.
The terms of the offer have been rejected by the board, but Minbos remains in negotiations with the party.
Unless a highly attractive final offer has been accepted beforehand, the tender process is likely to be completed by March 2013.
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