The Minbos Resources Ltd (ASX: MNB) share price has been on fire on Wednesday. Shares in the Aussie phosphate miner rocketed higher in early trade and remain up more than 10% at the time of writing.
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Why is the Minbos Resources share price surging?
The big news this morning was Minbos releasing its latest quarterly cash flow and activities reports to the market. Minbos reported net operating cash outflows of $483,000 but positive quarterly net cash flow thanks to $6.6 million in net equity raise proceeds.
March quarter highlights included:
- Execution of the Mineral Investment Contract (MIC) for exploration and feasibility studies to produce phosphate rock by Minbos within the Cabinda Phosphate Project area;
- Adoption of global standards for Environmental, Social and Governance (ESG) reporting;
- Recommencement of field trials in Angola and greenhouse experiments in the USA; and
- A $7.3 million placement to fund its Definitive Feasibility Study and accelerate the Cabinda Phosphate Project initiatives.
The Minbos Resources share price has shot higher on the back of this morning's update. The execution of the MIC is a big step forward for Aussie mining which formalises the company's engagement with Government Ministries and the Province of Cabinda in Angola.
Angola's Ministry of Mineral Resources, Petroleum and Gas approved Minbos' Mining Licence in March 2021. That licence is renewable for up to 35 years for phosphate mining from the Cacata Deposit.
Minbos has engaged impact monitoring technology platform Socialsuite to help measure outcomes against its new ESG framework and reporting process.
The coronavirus pandemic has impacted Minbos alongside many global miners. However, the company said it is still in the process of gaining exemptions to ongoing Angola restrictions which may impact previous development timelines.
The $7.3 million placement was completed in mid-February and was oversubscribed. The Minbos Resources share price jumped higher following that placement which issued 91.25 million fully paid ordinary shares.
Foolish takeaway
The Minbos Resources share price has shot more than 10% higher today after this morning's quarterly update. Progress with government licences, ESG compliance and a strong financial position have helped propel the company's shares higher.
