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Minbos Resources ups exposure to potash, new acquisition with DSO potential in Angola

Minbos Resources (ASX: MNB) is a company on the move with its latest agreement and has strategically positioned itself to benefit from increasing demand for fertilizer to boost crop yield - as the growing global population requires increased food sources.

In its latest growth initiative, Minbos has entered into a conditional agreement to acquire a large-scale potash licence located in the Cabinda Province of the Republic of Angola.

The significance of this new license is that it complements the company's rapidly advancing phosphate projects in the province.

The agreement not only provides Minbos with an attractive entry into one of the most prospective potash basins in the world, but delivers a unique combination of the already defined high-grade and potential DSO phosphate resources.

Peter Richards, executive chairman, said that the agreement also provides the potential of defining large, high grade potash resources within the same licence area, which sets Minbos apart from its peers and bodes well for a very exciting future for the company.

Importantly, Minbos has completed a legal due diligence on the licence and it is in good standing.

Minbos will now complete its technical due diligence on the available data before the agreement is fully executed, and will update the market when completed.

The new potash license

Known as the Dinge Potash Licence, Minbos will acquire 75% of the licence from Alum Industrial Lda (Alum), a private Angolan mineral exploration company, and provide funding to take the project through to Feasibility Study.

The Dinge project is supported by data from 13 historical exploration wells drilled for potash near the town of Dinge.

Many additional holes were drilled for oil in the Dinge licence area, with data revealing intersections of potash salt formations.

The licence area covers a substantial 785 square kilometres, and is hosted within the highly prospective Congo Basin.

Highlighting the prospectivity of the area are some major deposits, including Elemental Minerals’ (ASX: ELM) Sintoukola project which has Indicated and Inferred of 804 million tonnes at 31% KCl, including a high grade zone of 337 million tonnes at 39.9% KCl.

Add to the mix MagIndustries Corp Makolo project, hosting Proven and Probable Reserves of 191.5 million tonnes at 17.4% KCl and an Inferred Resource of 9.2 billion tonnes of carnalite at 12.1% K2O.

Significantly, a large proportion of the Dinge licence area overlaps Minbos’ Cabinda phosphate projects and in many areas such as Chivovo, the potash mineralisation underlies the phosphate mineralisation drilled by Minbos.

Phosphate and potash in the same license

The occurrence of phosphate and potash mineralisation within the same licence areas is an exciting development for Minbos; it immediately exposes the company to two of the most important fertiliser products and in the medium to long term provides the potential for shared infrastructure such as ports and roads.

In the immediate future the potash project will benefit by leveraging the experienced, in-country technical team already carrying out phosphate exploration and development providing significant operational and costs advantages.