PERTH (miningweekly.com) - Phosphate developer Minbos Resources on Thursday said it was a step closer to the development of its projects in Angola and the Democratic Republic of Congo (DRC) after receiving significant response in its search for a strategic partner.

The ASX-listed Minbos said the initial phase of the tender process resulted in a high level of interest from potential strategic partners, particularly major downstream fertiliser producers and trading companies in Asia and Europe.

The company added that several indicative offers had been received to provide funding to complete the bankable feasibility studies (BFS), to enable Minbos to advance its African projects towards development, and to provide long-term offtake agreements for these projects.

The first unconditional final offer was expected by late January, while remaining final offers were likely to be received during February and March.

“The high level of interest from potential strategic partners to participate in the feasibility, development and offtake of our phosphate projects reinforces our view that Minbos is well-positioned to become a significant and low-cost producer in the near future,” said MD Scott Sullivan.

“Our shortlist includes highly credible global players that would bring significant market expertise, as well as financial strength to the partnership.”

Meanwhile, Minbos had also received an unsolicited, nonbinding 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 it chose to separate from this process and submit an unsolicited, unconforming, and highly conditional offer.

Minbos said the terms of the offer had been rejected by the board, but the company remained in negotiations with the party.

A scoping study of Minbos’ Kanzi project, in the DRC has demonstrated that the project could produce a cash flow of some $1.5-billion over a 17-year mine life, delivering some one-million tons of phosphate rock a year.

The Cacata project, in Angola, was currently the subject of a BFS, which was investigating the establishment of an 800 000 t/y operation.