Pensana Shares Surge 38% After Securing Financing for Longonjo Project

Pensana PLC shares surged 38% after securing $268 million for the Longonjo project in Angola, which will produce 20,000 tonnes of rare earth carbonate annually. This financing is expected to enhance local employment and support clean energy initiatives.

Pensana PLC experienced a remarkable 38% increase in its shares following the announcement of $268 million in financing for its Longonjo rare earth project located in Angola. The financing package comprises a $160 million loan facility primarily provided by Africa Finance Corporation (AFC) and Absa Bank, along with $92 million sourced from equity and convertible loans from Angola’s Sovereign Wealth Fund (FSDEA) and AFC.

The Longonjo project is projected to produce 20,000 tonnes of high-value rare earth carbonate annually, crucial materials for electric vehicle production and wind energy systems. Once fully operational, this mine is anticipated to contribute to 5% of the global supply of rare earth magnet metals, indicating its significance in the industry.

Pensana Chairman Paul Atherley described the secured financing as a “transformational step” for the Longonjo project. This venture is expected to generate over 2,400 job opportunities and bolster local businesses significantly. The project’s advantageous location, providing direct access to the Lobito rail corridor, further establishes Longonjo as a pivotal player in the clean energy sector.

As a result of this positive development, Pensana’s stock rose to 38.45p, reflecting an increase of 10.55p during early trading hours.

In summary, Pensana PLC has secured critical financing for its Longonjo rare earth project, elevating its shares by 38%. This financing highlights the project’s potential to significantly impact global supply chains within the clean energy sector, while also promising substantial local economic benefits. With operational plans underway, Longonjo is poised to establish itself as a key contributor to the rare earth market.

Original Source: www.proactiveinvestors.com