Pensana has received approval for a $268 million financing package. This funding will help develop the Longonjo Rare Earth Project in Angola. The investment will support the first phase of the project. It is a major step toward developing a leading rare earth resource.
Key Financing Details and Stakeholder Involvement
The financing includes an $81.2 million investment from the Africa Finance Corporation (AFC) and Absa Bank. This is part of a larger syndicated loan totaling $160 million. The loan will provide the senior funding for the initial development phase of the Pensana rare earth Longonjo mine. Pensana’s subsidiary, Ozango Minerais, which holds an 84% stake, will manage the project.
The loan will cover about 60% of the projected costs for Phase 1. Pensana has also secured a $15 million bridging loan from the Angolan Sovereign Wealth Fund (FSDEA). Additionally, $38 million in equity and convertible loan commitments have been structured. AFC will invest $54.9 million through a convertible loan. The completion of loan documentation and necessary conditions will trigger these investments.
Impact on the Local Economy and Project Outlook
Pensana’s chairman, Paul Atherley, thanked AFC and FSDEA for securing the funding. He stated, “This project will produce 20,000 tonnes per year of clean, high-value MREC and create over 430 high-value processing jobs.” The Pensana rare earth project will have a significant impact on the global rare earth market.
The Longonjo project is located about 350 km southeast of Luanda in the Huambo district. It has a JORC-compliant reserve of 30 million tonnes. The reserve includes a grade of 2.55% Total Rare Earth Oxides (TREO), including 166,000 tonnes of Neodymium and Praseodymium Oxides (NdPrO). This makes Longonjo one of the most promising undeveloped rare earth resources in the world, with an operational expectancy of over 20 years.
Pensana has already invested more than $70 million over six years in exploration and preparatory studies for the project. The approval of this financing package is a key step in bringing the Pensana rare earth project to life. It will provide long-term benefits to both the company and the local community.
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