Pensana PLC shares surged 38% after securing $268 million in financing for its Longonjo project in Angola, with expectations of producing 20,000 tonnes of rare earth carbonate annually. The project will contribute significantly to the global rare earth supply and create thousands of jobs, marking a crucial step in the transition to clean energy.
Pensana PLC experienced a remarkable surge of 38% in its share price during early trading following the successful procurement of $268 million in financing for its Longonjo rare earth project located in Angola. This funding package is comprised of a loan facility worth $160 million, primarily supported by the Africa Finance Corporation (AFC) and Absa Bank, while also including an additional $92 million sourced from equity and convertible loans provided by Angola’s Sovereign Wealth Fund (FSDEA) and AFC.
The Longonjo project is projected to yield an annual output of 20,000 tonnes of rare earth carbonate, which is crucial for the manufacture of electric vehicles and wind turbines. Upon reaching full operational capacity, the mine is anticipated to contribute approximately 5% to the global supply of rare earth magnet metals, highlighting its significant impact on the market.
Paul Atherley, the Chairman of Pensana, described the financing achievement as a “transformational step” for the Longonjo project, indicating potential job creation for over 2,400 individuals and fostering support for local enterprises. Situated with direct access to the Lobito rail corridor, Longonjo is strategically positioned to become a vital component in the global transition towards clean energy solutions.
The company’s stock experienced an increase of 10.55 pence, reaching a price of 38.45 pence as a direct reaction to this favorable financing news.
In summary, Pensana PLC’s acquisition of $268 million in financing represents a significant milestone for its Longonjo rare earth project, catalyzing a remarkable 38% rise in share price. This funding will enable increased production of essential rare earth materials and contribute to local economic growth. The strategic positioning of the mine further solidifies its importance in the transition to a clean energy future.
Original Source: www.proactiveinvestors.com
