Pensana PLC shares rose 38% after securing $268 million financing for its Longonjo rare earth project in Angola. The funding includes a $160 million loan and $92 million in equity. Longonjo aims to produce 20,000 tonnes of rare earth carbonate annually and is expected to supply 5% of the global rare earth magnet market, creating over 2,400 jobs.
Pensana PLC experienced a significant increase in its share price, rising by 38% in early trading, following the announcement of full financing amounting to $268 million for its Longonjo rare earth project located in Angola. This financing package consists of a $160 million loan facility led by the Africa Finance Corporation (AFC) and Absa Bank, in addition to $92 million sourced from Angola’s Sovereign Wealth Fund (FSDEA) through equity and convertible loans.
The Longonjo project aims to produce 20,000 tonnes of high-value rare earth carbonate annually, which is crucial for the manufacturing of electric vehicles and wind turbines. Once operational, the mine is projected to contribute approximately 5% of the global supply of rare earth magnet metals.
Paul Atherley, Chairman of Pensana, described the financing as a “transformational step” for the project, which is expected to generate over 2,400 job opportunities and promote local business development. Additionally, the strategic position of Longonjo near the Lobito rail corridor will enhance its role in the global clean energy sector.
As a result of these developments, Pensana shares advanced by 10.55p, reaching a new price of 38.45p.
In conclusion, Pensana PLC’s recent financing acquisition marks a pivotal moment for its Longonjo rare earth project, demonstrating strong potential for economic development and environmental sustainability. The investment not only supports the production of essential materials for clean energy technologies but also promises to create substantial local employment opportunities, solidifying Pensana’s role within the global marketplace for rare earth minerals.
Original Source: www.proactiveinvestors.com
