Phosphate developer Minbos Resources has agreed to buy its Angolan joint venture partner, Petril Phosphate, in a deal worth $20 million.
Perth-based Minbos plans to acquire all Petril shares, which will result in shareholders of the two companies owning about 50 per cent of the enlarged group each.
Minbos and Petril are joint venture partners in the Cabinda phosphate project in Angola, which is currently part of a bankable feasibility study.
The deal will also include Petril’s two other phosphate projects in the Zaire province of Angola.
Minbos chief executive Lindsay Reed said it was just over a year since the two parties ceased their last set of merger discussions.
“A lot of the outstanding issues have now been addressed,” Reed said. “The transaction consolidates and simplifies the ownership of the Cabinda project, which is important as we complete the bankable feasibility study on the Cacata deposit.”