Pensana PLC shares rose 38% after securing $268 million in financing for its Longonjo rare earth project in Angola. The funding includes a $160 million loan from Africa Finance Corporation and Absa Bank, as well as $92 million from Angola’s Sovereign Wealth Fund. The project is projected to produce 20,000 tonnes of rare earth carbonate annually and will create over 2,400 jobs.
Pensana PLC experienced a substantial increase of 38% in its share price following the successful acquisition of full financing amounting to $268 million for its Longonjo rare earth project located in Angola. This financing package comprises a significant $160 million loan facility, primarily facilitated by the Africa Finance Corporation (AFC) and Absa Bank, along with $92 million derived from equity and convertible loans sourced from Angola’s Sovereign Wealth Fund (FSDEA) and AFC.
The Longonjo project is projected to annually yield 20,000 tonnes of high-value rare earth carbonate, which is crucial for the manufacturing of electric vehicles and wind turbines. Upon achieving full operational capacity, the mine is anticipated to represent 5% of the global supply of rare earth magnet metals, indicating its significant role in the industry.
Paul Atherley, Chairman of Pensana, emphasized that this financing represents a “transformational step” towards advancing the project. The development is expected to generate over 2,400 jobs and bolster local businesses. Its strategic location, providing direct access to the Lobito rail corridor, positions Longonjo as a pivotal component in the global clean energy revolution.
Following this announcement, Pensana’s stock rose by 10.55p, reaching a price of 38.45p, reflecting investor confidence in the company’s growth potential and future contributions to the rare earth market.
In summary, Pensana PLC’s successful acquisition of $268 million in financing for its Longonjo rare earth project has resulted in a notable 38% surge in share price. The project aims to contribute significantly to the rare earth supply needed for clean energy technologies, while also enhancing local employment and business opportunities. This development is regarded as a fundamental move for Pensana, establishing its role in supporting the global clean energy sector.
Original Source: www.proactiveinvestors.co.uk
