Baobab Resources (LON:BAO) received a US$1.29 million cash boost from the World Bank’s International Finance Corp (IFC).
The IFC is a strategic partner in Baobab’s flagship Tete project in Mozambique. It is also the group’s largest single shareholder with a 6.26 percent stake.
This latest payment represents the IFC’s pro-rata contribution to the 2011 exploration programme at Tete.
"We are very pleased to announce the continued support of our partner IFC as we accelerate our 2011 work programme at Tete,” said Baobab chairman Jeremy Dowler.
“It is interesting to note that the corresponding contribution in April 2010 was approximately US$700,000. We anticipate that the IFC will become more involved as the project progresses into pre-feasibility studies and in the facilitation of access to port, rail and power infrastructure."
IFC creates opportunities for people to escape poverty and improve their lives, Baobab highlighted.
As part of this remit, the IFC fosters sustainable economic growth in developing countries, by supporting private sector development, mobilising private capital, and providing advisory and risk mitigation services to businesses and governments.
"IFC is pleased to continue its relationship with Baobab and is working closely with the company to optimize its environmental and social management as it advances its projects in Mozambique," said Andrew Gunther, the IFC's Senior Manager for Infrastructure and Natural Resources in Africa and Latin America.
Investor interest in Baobab has been increasing in recent months, something that’s quite clear with a quick glance at the chart. The shares have more than doubled in value, from 14 to as high as 56 pence a share, since the turn of the year. Much of the rise has been led by a growing appreciation for the sheer scale of Baobab’s projects in Mozambique.
Tete has been the focus of extensive drilling in 2010 and the early part of 2011 – there is to be no let up through the rest of 2011 either.
Speaking to Proactive Investors last month managing director Ben James said that Baobab is set for a series of resource upgrades, which may see the Tete’s resource grow from the current 48 million tonnes to about 300 million tonnes by July.