Pensana Shares Surge 38% Following Financing for Longonjo Project

Pensana PLC shares rose 38% after the company secured $268 million financing for its Longonjo rare earth project in Angola. The funding includes a $160 million loan from AFC and Absa Bank, alongside $92 million in equity from local funds. Longonjo aims to produce 20,000 tonnes of rare earth carbonate annually, contributing to global clean energy efforts and local job creation.

On March 18, 2025, shares of Pensana PLC (LSE:PRE, OTC:PNSPF) experienced a significant increase of 38% in early trading, attributed to the successful acquisition of full financing amounting to $268 million for the Longonjo rare earth project located in Angola.

The funding package comprises a loan facility of $160 million, primarily led by Africa Finance Corporation (AFC) and Absa Bank, along with $92 million originating from equity and convertible loans provided by Angola’s Sovereign Wealth Fund (FSDEA) and AFC.

The Longonjo project is anticipated to produce 20,000 tonnes of high-value rare earth carbonate each year, which is crucial for manufacturing electric vehicles and wind turbines. Once in full operation, the mine is predicted to supply 5% of the global rare earth magnet metal market.

Paul Atherley, Chairman of Pensana, described the financing as a “transformational step” for the Longonjo project, which is expected to create more than 2,400 jobs and contribute positively to local businesses. The project’s strategic location near the Lobito rail corridor enhances its potential role in the global clean energy sector.

As a result of this announcement, Pensana’s stock demonstrated notable growth, advancing by 10.55 pence to reach a trading price of 38.45 pence.

Pensana’s securing of $268 million financing for the Longonjo rare earth project marks a pivotal development for the company. This influx of capital enables the anticipated production of rare earth carbonates essential for clean energy technologies. Additionally, the project promises significant local economic benefits, including job creation and support for local enterprises, reinforcing Pensana’s strategic role in the global clean energy movement.

Original Source: www.proactiveinvestors.co.uk