Pensana PLC’s shares increased by 38% after securing $268 million financing for its Longonjo rare earth project in Angola. The financing comprises a $160 million loan and $92 million from Angola’s Sovereign Wealth Fund. The project aims for an annual production of 20,000 tonnes of rare earth carbonate and will create over 2,400 jobs, bolstering local economies.
Shares of Pensana PLC (LSE: PRE, OTC: PNSPF) experienced a remarkable increase of 38% in early trading after the company successfully secured financing amounting to $268 million for its Longonjo rare earth project located in Angola. This funding package comprises a $160 million loan facility, which is being led by Africa Finance Corporation (AFC) and Absa Bank, alongside additional funds totaling $92 million sourced from equity and convertible loans provided by Angola’s Sovereign Wealth Fund (FSDEA) and AFC.
The Longonjo project is anticipated to yield 20,000 tonnes of high-value rare earth carbonate annually, which plays a critical role in the production of electric vehicles and wind turbines. Once fully operational, the mine is expected to contribute to 5% of the global supply of rare earth magnet metals. This positions Longonjo as a significant asset in the burgeoning clean energy sector.
Pensana Chairman Paul Atherley emphasized the importance of this financing, describing it as a “transformational step” for the project that will create over 2,400 jobs and bolster the local economy. Longonjo’s strategic location with direct access to the Lobito rail corridor enhances its potential as a key player in the global transition towards sustainable energy. Following this news, Pensana’s stock rose by 10.55 pence, reaching a value of 38.45 pence.
In summary, Pensana PLC’s acquisition of $268 million in financing marks a pivotal advancement for its Longonjo rare earth project in Angola, stimulating a 38% increase in stock value. This initiative not only enhances the project’s viability but also promises significant job creation and economic support in the region, underlining its strategic importance in the global clean energy market.
Original Source: www.proactiveinvestors.com
