Minbos Resources (ASX: MNB) expects to release in March a resource upgrade for its Kanzi phosphate project in the Democratic Republic of Congo and is in talks with potential strategic partners.
Samples from aircore drilling completed in December have now being received in Johannesburg and analysis will be carried out over the coming weeks.
The company had previously noted this drilling had confirmed its understanding of the Kanzi deposit and the high project potential with 154 of the 171 holes drilled intersecting phosphate mineralisation with the thickness of between 3 metres and 24 metres with an average of 7.2 metres.
Of these, 89 were infill holes drilled to enable the upgrade of the resource from Inferred to Indicated category, 11 holes were drilled to twin holes previously drilled in 2011 while 71 holes were drilled in the targeted area of first mining to enable more detailed modelling and planning for the pit.
Minbos added that site visits had been completed by two parties and negotiations for investment are in progress.
It said that its holdings in two outstanding phosphate projects located in Central Africa, positioning it well into the expanding fertiliser market.
The company had last year received several indicative offers have been received to provide funding to complete bankable feasibility studies to enable Minbos to advance its Angolan and DRC phosphate rock projects towards development and to provide long term phosphate off-take agreements for its projects.
In order to ensure that the process with strategic partners can run its course, Minbos has been presented with several short term funding options. The board is consdering these options and will decide upon the most appropriate for the company’s current needs in the very near future.
Minbos has also decided to discontinue further investigation of the Dinge Potash Licence following due diligence to focus on its phosphate assets and is engaging with Kanzi partner Allamanda to resolve an issue that could affect its stake in the project.
While the company had originally entered into a joint venture agreement with Allamanda that gave it a 65% interest in Kanzi, Allamanda has now presented it with a side agreement that was purportedly entered into concurrently with the signing of the original JV agreement by Agrim, without the knowledge or consent of the directors of Minbos.
This seeks to apportion Minbos a 49% interest in the economic benefit of the Licences which form the Kanzi project, with a 51% economic interest held by Allamanda.
Minbos has obtained preliminary legal advice in relation to the validity of this side agreement because it was executed without proper authority from the board of Minbos. The advice has confirmed that the side agreement is open to legal challenge.
The company will continue to focus on developing the Kanzi project and the Cabinda project in Angola and will attempt to resolve the issue in a positive manner.
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