THIS
ANNOUNCEMENT CONTAINS INSIDER INFORMATION
Pensana
Plc
("Pensana"
or the "Company")
Update
on Longonjo Finance
Pensana
Plc (PRE.LSE) (the "Company")
is pleased to advise that the Company has received approvals for
the full financing totalling circa US$ 268
million for the
Longonjo rare
earth project:
-
The Board
of the Africa Finance Corporation ("AFC"),
has approved its US$81.2 million
participation in an approximately
US$160 million syndicated
loan facility ("the
Facility")
alongside major South African bank Absa Bank
Limited, subject
to the conclusion of definitive loan documentation and the
fulfilment of conditions precedent contained
therein.
-
The
Facility will provide senior funding for the Phase 1 development of
the Company's Longonjo rare earth mine ("Longonjo")
in Angola through its 84% owned
subsidiary Ozango Minerais SA ("Ozango").
-
The
Facility will comprise approximately 60% of Phase 1
project funding for Longonjo.
-
In
addition to the US$15.0 million
bridging loan already provided by the Angolan Sovereign Wealth Fund
("FSDEA"),
the balance of Phase 1 funding will be provided through
equity, with
FSDEA having approved an investment of
US$38 million in the
form of equity and a convertible loan, and the AFC having approved
an investment of US$54.9 million in
the form of a convertible loan. The equity investments will be at
subsidiary level and are also subject to the conclusion of
definitive documentation and the fulfilment of conditions precedent
contained therein.
FSDEA
Chairman, Armando Manuel,
commented:
"The
Longonjo Mining Project holds strategic significance for the
Angolan Sovereign Wealth Fund
("FSDEA") as
part of its commitment to advancing the national mining sector.
Beyond its substantial economic impact-such as job creation and tax
revenues-the project plays a crucial role in establishing in
Angola a key segment of the value
chain for an industry essential to the global energy
transition.
As a
key investor, FSDEA has been instrumental in demonstrating the
untapped potential of Angola's
mining sector, which remains a critical driver of economic
diversification. With the support of ABSA and AFC, this initiative
represents a concerted effort to foster sustainable growth, enhance
local capabilities, and reinforce Angola's position in the international mining
landscape".
President
& CEO of Africa Finance Corporation, Samaila Zubairu,
commented:
"With
approximately one-third of the world's rare earth mineral reserves,
Africa is poised to become a
cornerstone of the global clean energy revolution. These minerals
are essential for high-tech industries, from semiconductors to
advanced batteries and renewable energy solutions. At AFC, we
recognize the immense strategic value of Africa's resources-not just for our economic
transformation but for securing diversified, sustainable supply
chains for the future. Our partnership with Pensana and FSDEA on
the Longonjo project reflects our unwavering commitment to
unlocking Africa's mineral
potential through local value addition, industrial growth, and
responsible mining. By investing in Africa's rare earth sector, we are not only
accelerating regional development but also strengthening global
energy security in line with the aspirations of the Mineral
Security Partnership."
Pensana
Chairman, Paul Atherley,
commented:
"We
are extremely grateful for the work undertaken by
the AFC and
FSDEA teams in
providing the Longonjo project with the funding
requirements for
the Longonjo project.
The
Longonjo project will produce
an average of around 20,000 tonnes per annum of clean high value
MREC and will have
a major positive impact on the community, creating over 430
high value processing jobs. Over 50% of the jobs created are
expected to be allocated to young people as
well as supporting
local businesses, service providers and
farmers.
Once
in full second
phase production, the project will
create an estimated 2,400 direct
and indirect
jobs and will produce
around 5% of the world's magnet
metal rare earths used
for diverse
applications including wind
turbines and electric vehicles."
About
Longonjo
Pensana
has spent over US$70 million over the
past six years on exploration, technical and environmental studies
on the Longonjo rare earth project in the Huambo district of
Angola approximately 350
kilometres Southeast of the capital Luanda.
The
Company has successfully delineated a near
surface
JORC
compliant reserve of 30 million tonnes grading 2.55% TREO
containing 166,000 tonnes of NdPrO has been delineated making it
one of the world's largest undeveloped magnet metal rare earth
deposits with a mine life of over 20 years.
The
electrification of motive power is arguably the biggest energy
transition in history and needs rare earths for permanent
magnets.
Once in
full second phase production the mine will produce around 5% of the
world's production in the form of a high value mixed rare earth
carbonate, capable of being converted into permanent magnets for
electric vehicles and offshore wind turbines.
The
Company is committed to developing the Longonjo mine to the very
best international standards with the highest level of community
engagement and have published a blueprint for sustainable rare
earth development which is available on our website.
Pensana_Blueprint_for_Sustainable_Rare_Earths.pdf
The team's
efforts were recognised in 2022 when Pensana received an award by
S&P Green Bond Rating Agency CICERO and more recently, were
awarded a Gold Medal by EcoVadis, a leading sustainability ratings
provider, placing it among the top 5% of the companies
assessed.
It has
been independently estimated that the Longonjo mine, with access to
hydroelectric power and direct access to the Atlantic Port of
Lobito via the Lobito Corridor rail line will save over 4 million
tonnes of CO2 emissions - the carbon equivalent of replacing 1.5 GW
of fossil fuel electricity generation.
The
information contained within this announcement is considered by the
Company to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No.596/2014. Upon the publication of
this announcement via a Regulatory Information Service, this inside
information will be considered to be in the public domain. The
person responsible for arranging for the release of this
announcement on behalf of the Company
is Paul
Atherley, Chairman.
-
ENDS
-
For
further information, please contact:
Shareholder/analyst
enquiries:
Pensana
Plc
Paul Atherley, Chairman IR@pensana.co.uk
Tim George, Chief Executive Officer
Rob Kaplan, Chief Financial Officer
