Pensana PLC shares surged 38% after securing $268 million in financing for the Longonjo rare earth project in Angola, including a $160 million loan and $92 million in equity and convertible loans. The project aims to produce 20,000 tonnes annually, accounting for 5% of global rare earth magnet supply. Chairman Paul Atherley called it a “transformational step,” noting its potential to create over 2,400 jobs.
In a significant development, Pensana PLC has experienced a remarkable 38% increase in its share price following the successful acquisition of $268 million in full financing for its Longonjo rare earth project located in Angola. This funding package is comprised of a $160 million loan facility, spearheaded by Africa Finance Corporation (AFC) and Absa Bank, in addition to $92 million sourced through equity and convertible loans from Angola’s Sovereign Wealth Fund (FSDEA) and AFC.
The Longonjo project is anticipated to yield 20,000 tonnes of high-value rare earth carbonate on an annual basis, which is crucial for manufacturing electric vehicles and wind turbines. Upon reaching full operational capacity, the mine is projected to contribute significantly to the global market, accounting for 5% of the world’s production of rare earth magnet metals.
Paul Atherley, Chairman of Pensana, characterized the acquisition of financing as a “transformational step” for the project, projecting the creation of over 2,400 jobs and providing support to local businesses. Notably, Longonjo benefits from direct access to the Lobito rail corridor, positioning it strategically within the global clean energy landscape.
Following this announcement, Pensana’s stock price rose by 10.55p, reaching a new level of 38.45p in early trading.
In summary, Pensana PLC’s securing of $268 million in financing for its Longonjo rare earth project marks a pivotal advancement for the company and the local economy in Angola. With substantial contributions to rare earth production, job creation, and local business support, the project is poised to play a significant role in the clean energy sector. The recent surge in share price reflects investor confidence in the project’s potential success.
Original Source: www.proactiveinvestors.com
