Pensana PLC on Tuesday announced it has secured full financing approvals for its Longonjo rare earth project in Angola, with total funding commitments reaching approximately $268 million.
The Africa Finance Corp and South African lender Absa Bank Ltd have approved a $160 million syndicated loan facility, with AFC contributing $81.2 million. The remaining financing includes a $15 million bridging loan and a $38 million equity and convertible loan investment from Angola’s Sovereign Wealth Fund, alongside a $54.9 million convertible loan from AFC.
Pensana shares surged 29% to 36.00 pence on Tuesday, following the news.
Longonjo, located in Angola’s Huambo district, is expected to produce 20,000 tonnes of mixed rare earth carbonate annually in its first phase. Once fully operational, it is projected to supply around 5% of the world’s magnet metal rare earths, which Pensana says are essential for electric vehicles and wind turbines.
Pensana Chair Paul Atherley said: ‘The Longonjo project will produce an average of around 20,000 tonnes per annum of clean high value MREC and will have a major positive impact on the community, creating over 430 high value processing jobs. Over 50% of the jobs created are expected to be allocated to young people as well as support local businesses, service providers and farmers.’
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