Pensana PLC shares rose 38% after securing $268 million financing for the Longonjo rare earth project in Angola, which will produce 20,000 tonnes of rare earth carbonate annually and create over 2,400 jobs, contributing 5% to global supply.
Pensana PLC, listed on the London Stock Exchange, experienced a remarkable 38% increase in its share price during early trading due to the successful acquisition of $268 million in financing for its Longonjo rare earth project in Angola. This financial package encompasses a substantial $160 million loan facility, primarily orchestrated by Africa Finance Corporation (AFC) and Absa Bank, along with $92 million sourced from equity and convertible loans provided by Angola’s Sovereign Wealth Fund (FSDEA) and AFC.
The Longonjo project is projected to generate 20,000 tonnes of high-value rare earth carbonate each year, a critical component for producing electric vehicles and wind turbines. Once operational, this mine is expected to fulfill approximately 5% of the global demand for rare earth magnet metals.
Paul Atherley, Chairman of Pensana, characterized the financing as a pivotal advancement for the project, which anticipates the creation of over 2,400 jobs and the encouragement of local businesses. Additionally, the mine’s proximity to the Lobito rail corridor positions Longonjo strategically within the burgeoning global clean energy sector. Following these developments, the company’s stock increased by 10.55 pence, reaching a total of 38.45 pence.
In summary, Pensana’s stock performance following the securement of financing for the Longonjo rare earth project highlights the significance of this investment in supporting clean energy initiatives. With substantial job creation and enhanced local business opportunities, coupled with Longonjo’s potential impact on global rare earth supply, the project marks a significant milestone for both the company and the industry.
Original Source: www.proactiveinvestors.co.uk
