The Minbos Resources Ltd (ASX: MNB) share price is on fire on Wednesday.
In afternoon trade, the phosphate and green hydrogen focused exploration and development company's shares are up 21% to 15.7 cents.
Why is the Minbos share price shooting higher?
Investors have been bidding the Minbos share price higher today after the company announced the completion of the sale of its interests in the Ambato Rare Earths Project in Madagascar.
According to the release, the company has received sale proceeds of A$2.46 million from ALS (Hong Kong) from the divestment.
These proceeds will now be used to complete the definitive feasibility study (DFS) for the Cabinda Phosphate Project and studies for the Capanda Green Hydrogen-Ammonia Project. Both projects are based in Angola.
Management believes the Capanda Green Hydrogen-Ammonia Project will become another key value driver for the company. Particularly given its supply agreement with RNT-EP, Angolan's power network operator.
Minbos previously revealed that it has agreed in principle to supply RNT-EP with 200MW of Zero-Carbon hydro electrical power from the project. This appears to have caught the eye of other parties, with Minbos revealing the receipt of a number of unsolicited enquiries from potential technical, offtake and investment partners today.
Finally, the company also revealed that it 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.
Management commentary
Minbos CEO, Lindsay Reed, was pleased with the news. He 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.
