Strategic cooperation agreement signed with cornerstone investor
This morning our fertiliser and green ammonia/hydrogen Investment Minbos Resources (ASX:MNB) announced the signing of a strategic cooperation agreement.
The strategic cooperation agreement has been signed with the same group of investors that made a $15M cornerstone investment in MNB and the term sheet signed for a potential US$25M debt facility.
The syndicate is led by Hong Kong based Mr. Liang Feng who is also founder and chairman of Shanghai listed “Shanghai Putailai New Energy Technology” which has a market cap of US$18 billion and is the world’s largest anode materials maker for lithium batteries.
The strategic cooperation agreement covers MNB’s green ammonia/hydrogen project as well as a commitment to explore opportunities in the “ferro phosphate” and “lithium ferro phosphate” space. The key details across both are as follows:
Green ammonia/hydrogen project:
- Investigate the availability of up to 500MW hydropower for new green ammonia projects.
- Evaluate/develop potential downstream ammonia products.
- Complete feasibility studies on a large-scale Ammonia Project.
- Identify, approach and secure financing to fund the CAPEX requirements for production facilities.
- Assist with securing a suitable site for construction of the plant.
- Secure customers and offtake arrangements for the Ammonia products
- Assist with government relations and permitting during development process.
- Provide phosphate feedstock under a long-term offtake agreement.
“Ferro phosphate” and “lithium ferro phosphate” (LFP Projects):
- Identify, approach and secure technology/service providers + investment/offtake partners. Partner to collaborate on project feasibility.
- MNB to commit to long term offtake for 100,000 tonnes per annum of high-grade phosphate rock at agreed market rates.
The significance of this agreement is that it has been signed with the same group of investors who will soon become major shareholders in MNB (after the $15M cornerstone investment shares are issued).
With a major shareholding in MNB, we think the group of investors will be incentivised to create shareholder value by bringing added downstream capabilities to MNB, both at its phosphate (fertiliser) project and its green ammonia/hydrogen project.
