Pensana PLC’s shares surged 38% after securing $268 million in financing for the Longonjo rare earth project in Angola, which is expected to produce 20,000 tonnes of rare earth carbonate annually, supporting the clean energy sector and creating 2,400 jobs.
Pensana PLC reported a significant rise in its shares, soaring 38% following the successful acquisition of $268 million in financing for its Longonjo rare earth project located in Angola. The financial package comprises a $160 million loan facility arranged by Africa Finance Corporation and Absa Bank, in addition to $92 million sourced from equity and convertible loans provided by Angola’s Sovereign Wealth Fund and the Africa Finance Corporation.
The Longonjo project is projected to produce 20,000 tonnes of high-value rare earth carbonate each year, which is crucial for manufacturing electric vehicles and wind turbines. Upon reaching full operational capacities, this mine is expected to contribute to 5% of the global supply of rare earth magnet metals.
Paul Atherley, Chairman of Pensana, described the financing as a “transformational step” for the venture, which will lead to the creation of over 2,400 jobs and enhance support for local businesses. The project’s strategic location, with direct access to the Lobito rail corridor, positions Longonjo as an essential entity in the advancing global clean energy sector.
Following this remarkable announcement, Pensana’s stock climbed by 10.55 pence, reaching a total of 38.45 pence in early trading.
In summary, the successful financing of Pensana’s Longonjo rare earth project in Angola signifies a pivotal advancement for the company, enhancing its position in the critical materials sector for clean energy solutions. With both job creation and local economic stimulation as key benefits, alongside a significant share price increase, the project is set to bolster Pensana’s contribution to the global supply of rare earth elements.
Original Source: www.proactiveinvestors.com
