Pensana Shares Surge 38% Following $268 Million Financing for Angola Project

Pensana PLC shares surged 38% after obtaining $268 million in financing for its Longonjo rare earth project in Angola. The funding includes a $160 million loan and $92 million in equity and loans, enabling the production of 20,000 tonnes annually of rare earth carbonate. This project is expected to create 2,400 jobs and significantly contribute to the global rare earth supply.

Pensana PLC (LSE:PRE, OTC:PNSPF) experienced a remarkable 38% increase in share price following the successful acquisition of $268 million in financing for its Longonjo rare earth project located in Angola. This financial package comprises a $160 million loan facility from Africa Finance Corporation (AFC) and Absa Bank, as well as $92 million derived from equity and convertible loans from Angola’s Sovereign Wealth Fund (FSDEA) and AFC.

The Longonjo project is anticipated to yield 20,000 tonnes annually of high-quality rare earth carbonate that is pivotal for electric vehicles and wind turbines. Upon reaching full operational capacity, the mine is projected to contribute to 5% of the global supply of rare earth magnet metals, highlighting its significance in the market.

Paul Atherley, the Chairman of Pensana, described the financing as a “transformational step” for the initiative, forecasting the creation of over 2,400 jobs and bolstering local economies. With its strategic location adjacent to the Lobito rail corridor, Longonjo is poised to be a vital participant in the ongoing global clean energy transition.

The company’s stock saw an increase of 10.55p, raising the total price to 38.45p in early trading.

In summary, Pensana PLC has secured vital financing to advance its Longonjo rare earth project, resulting in a significant rise in share price. This funding not only facilitates the production of essential materials for clean energy technologies but also enhances local employment opportunities. The strategic positioning of the project further reinforces its importance in the global market for rare earth metals.

Original Source: www.proactiveinvestors.com