Pensana concludes $100m strategic equity investment

Under the terms of the agreement, the strategic investor has subscribed for 95-million new ordinary shares, subject to confirmatory due diligence of the Longonjo rare earth project in Angola, along with shareholder authorisation of the share issue and approval for the allotment of shares to the strategic investor.

In addition to the $100-million investment, 2.85-million new ordinary shares will be issued to institutional investors for a total consideration of $3-million.

“We are delighted with the $100-million strategic investment from an investor which is highly supportive of our plans to establish a major US mine-to-magnet supply chain,” chairperson Paul Atherley says.

The funds will be used to maintain the Longonjo mine development ahead of the US ban on use of Chinese-origin rare earth magnets or materials in US weapon systems from 2027 and to provide an alternative source for civilian use of neodymium-praseodymium following the announced 25% tariff on rare earths from China starting in 2026, he informs.

It would also be used to fund additional drilling programmes to extend the Longonjo life-of-mine to become one of the world’s largest rare earth mines, developing co-products including heavy rare earth oxides alongside the magnet metals currently contemplated and supporting the company’s Nasdaq listing in 2026, Atherley avers.

He says that the Longonjo mine construction is advancing well with the company’s major shareholder the Angola Sovereign Wealth Fund FSDEA recently advancing the balance of the $25-million facility.

“Once in production from 2027, Longonjo will be one the world’s largest producers of light and heavy rare earths capable of supporting the production of over 10 000 t of rare earth permanent magnets.”

Independent Nordic investment bank ABG Sundal Collier acted as Pensana’s financial adviser and intermediary in the strategic investor transaction.