Pensana Shares Surge 38% After Securing Financing for Longonjo Project

Pensana PLC shares rose 38% after securing $268 million for its Longonjo rare earth project in Angola, which aims to produce 20,000 tonnes of rare earth carbonates annually and create over 2,400 jobs, significantly impacting the clean energy sector.

Pensana PLC’s shares experienced a remarkable increase of 38% following the acquisition of full financing amounting to $268 million for its Longonjo rare earth project located in Angola. This financial package comprises a $160 million loan facility led by the Africa Finance Corporation (AFC) and Absa Bank, complemented by $92 million secured through equity and convertible loans from Angola’s Sovereign Wealth Fund (FSDEA) and AFC.

The Longonjo project aims to produce 20,000 tonnes of high-value rare earth carbonate annually, a crucial component utilized in electric vehicles and wind turbines. Once it reaches full operational capacity, the mine is projected to supply 5% of the global demand for rare earth magnet metals.

Chairman Paul Atherley referred to the financing as a “transformational step” for the project, which is anticipated to create more than 2,400 job opportunities and bolster local businesses. Additionally, the mine’s direct access to the Lobito rail corridor positions Longonjo as a significant contributor to the global clean energy sector.

Following this announcement, Pensana’s stock rose by 10.55 pence, reaching a price of 38.45 pence per share.

In conclusion, Pensana PLC’s achievement in securing $268 million in financing for the Longonjo rare earth project marks a significant milestone. This funding not only supports the production of essential resources for clean energy initiatives but also promises substantial job creation and economic development in Angola. The project’s strategic positioning enhances its role in the global transition towards sustainable energy solutions.

Original Source: www.proactiveinvestors.co.uk