MNB 0.00% 9.2¢ minbos resources limited

Ann: Ambato sale completed as momentum builds for Green Ammonia, page-2

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    $2.46M AMBATO SALE COMPLETED AS MOMENTUM
    BUILDS FOR GREEN HYDROGEN-AMMONIA PROJECT
    Highlights
    • Sale completed on Minbos’ Ambato Rare Earths Project with the Company receiving
    A$2.46M sale proceeds
    • Receipt of updated Formal Resolution from Angolan power authority (RNT-EP) on
    200MW long term Zero Carbon hydro electrical power for Green HydrogenAmmonia Project confirming key commercial parameters of the proposed
    commercial arrangement
    • Significant enquiries received from potential technical, offtake and investment
    partners for the Green Hydrogen-Ammonia Project
    • Review being undertaken on ability to develop a Lithium Iron Phosphate battery
    business unit following initial enquiries from large global battery producers
    Minbos Resources Limited (ASX:MNB) (“Minbos” or the “Company”) is pleased to confirm
    completion of the divestment of its interests in Madagascan Rare Earths Project to ALS (Hong
    Kong) Limited. Proceeds of the divestment (A$2.46M) are to be applied to complete 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 set to become another key value driver for
    the Company as the Cabinda Phosphate Project proceeds towards DFS completion.
    Further to the announcement on 10 May 2022, the Company can now confirm it has received
    an updated resolution from RNT-EP, Angolan’s power network operator.
    This updated resolution confirms the key commercial parameters of the power supply
    arrangement and is in lieu of the Memorandum of Understanding (MOU) that the Company
    previously expected by mid month (with the MOU now expected following an initial technical
    discussion process).
    Key Commercial Parameters:
    Concessional Pricing
    • Initial 100MW at $US0.004 (0.4c) kilowatt hour for 5 years then 0.8c kilowatt
    hour for 20 years.
    • Subsequent 100MW at $US0.015 (1.5c) kilowatt hour for 25 years.
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    ASX Code: MNB Office: Unit 5, 254 Rokeby Rd, Subiaco WA 6008
    T: +61 8 6219 7171 E: [email protected] W: www.minbos.com ABN: 93 141 175 493
    Key Undertakings
    Following receipt of the amended resolution and as part of the negotiations on the proposed
    MOU, the Company has undertaken to provide key milestones and studies to RNT-EP both in
    relation to the Green Hydrogen-Ammonia Project and, more generally, in the Angolan
    Fertilizer & Agricultural sector. These undertakings include:
    • Budget and first year’s timetable for a market assessment study, for the proposed
    Green Hydrogen-Ammonia Plant.
    • Technology and Engineering Partnership Agreement to be executed with a
    preferred technology partner.
    • Transport Logistics Study to analyse the cost of transporting the materials for the
    Green Hydrogen-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.
    • Agricultural Stakeholder Consultation with nutrient users, importers, distributors
    and agronomists to identify the most suitable nitrogen fertilizers, climate, soil
    fertility, available raw materials and agricultural production forecast.
    • Soil sampling to be carried out in conjunction with the Ministry of Agriculture and
    covering approximately 10 million hectares of agricultural land.
    Following the Company’s announcement that it had secured in principle agreement from RNTEP for the supply of 200MW of Zero-Carbon hydro electrical power1 and the advancement of
    the proposed Green Hydrogen-Ammonia Project, the Company has received a number of
    unsolicited enquiries from potential technical, offtake and investment partners with a variety of
    opportunities including:
    • Recognition that surging natural gas prices are squeezing industrial sectors and
    the attractiveness of the concessional pricing of the Zero-Carbon Hydropower
    franking the Green Hydrogen-Ammonia Project opportunity.
    • Interest in the long-term supply of Ammonium Nitrate for industrial uses (mainly
    drill and blast mining activities) in the Africa region.
    • Heightened interest in the Green Hydrogen-Ammonia investment thematic and its
    ability to improve sustainable agricultural and food security.
    1ASX Announcement – RNT-EP affirms support for Minbos’ Zero-Carbon Hydroelectric Green Hydrogen - Ammonia Project.
    3
    ASX Code: MNB Office: Unit 5, 254 Rokeby Rd, Subiaco WA 6008
    T: +61 8 6219 7171 E: [email protected] W: www.minbos.com ABN: 93 141 175 493
    The Company remains focussed on progressing the opportunity and has commenced meeting
    with suitable technology and investment partners.
    In addition to above, the Company has received initial in-bound enquiries on the ability to use
    phosphate from the Cabinda Phosphate Project for the production of Lithium Iron Phosphate
    batteries. Lithium Iron Phosphate batteries (LiFePO4 or LFP) offer multiple benefits compared to
    lead-acid batteries and other lithium batteries. Longer life span, no maintenance, extremely safe,
    lightweight, improved discharge and charge efficiency, to name a few.
    The quality of the phosphate proposed to be produced from the Cabinda Phosphate Project
    (grade 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 dividends, with multiple
    potential business opportunities on the table that we believe will quickly overtake our
    phosphate project in relation to returns for shareholders.
    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 time, infrastructure spend
    and power pricing advantage. These advantages cannot be underestimated.”
    -END
 
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