Pensana PLC shares rose 38% after securing $268 million in financing for its Longonjo rare earth project in Angola. The financing includes a $160 million loan and $92 million in equity and loans from local funds. The project aims to produce 20,000 tonnes of rare earth carbonate annually and create over 2,400 jobs.
Pensana PLC shares experienced a 38% increase in early trading, following the announcement of complete financing amounting to $268 million for its Longonjo rare earth project in Angola. The financing structure includes a $160 million loan facility supported by Africa Finance Corporation (AFC) and Absa Bank, in addition to $92 million in equity and convertible loans sourced from Angola’s Sovereign Wealth Fund (FSDEA) and AFC.
The Longonjo project is designed to produce 20,000 tonnes of high-value rare earth carbonate annually, a critical component for technologies like electric vehicles and wind turbines. Once operational, the mine is projected to contribute 5% to the global supply of rare earth magnet metals, significantly impacting renewable energy industries.
Paul Atherley, Chairman of Pensana, described the financing as a “transformational step” for the project’s future. The development is expected to create over 2,400 jobs while bolstering local economies. Additionally, Longonjo has direct access to the Lobito rail corridor, enhancing its logistical advantage in the clean energy sector.
Following this positive news, Pensana’s stock rose by 10.55p, reaching a total of 38.45p.
Pensana PLC’s successful financing for the Longonjo project marks a significant advancement for the company, offering substantial job creation and a vital role in the rare earth supply chain crucial for clean energy technologies. This project not only enhances local economic growth but also positions Pensana as a key contributor to global sustainability efforts.
Original Source: www.proactiveinvestors.co.uk
