REG-Pensana Plc: Longonjo Update

PensanaAnnouncement

03/01/2024 07:15

 

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

Pensana Plc

("Pensana" or the "Company")

 

UPDATE ON CONSTRUCTION ACTIVITIES AT LONGONJO

 

Pensana is pleased to provide the following update on activities at the
Longonjo minesite ahead of main construction.

 

As previously announced the early-stage development activities are being
funded by a US$15 million bridging loan provided by FSDEA (the Angolan
Sovereign Wealth Fund) ahead of the main finance. 

 

The significant activities have been the civil works for the camp, the
rehabilitation of the access road to the Longonjo railway station and the
agricultural demonstration plots under the Livelihood Restoration Programme.

 

The 4.5 kilometre road linking the site to the Benguela railway line has been
upgraded. The enhanced road features include an improved roadbed substructure,
a redefined road profile and rapid drainage systems.

 

Serving as the primary route for inbound materials during construction and
later for reagent import and the export of Mixed Rare Earth Carbonate in
containers, the road connects the mine to the Longonjo station for rail access
to the port of Lobito for shipping.

 

The Benguela railway line is part of the Lobito corridor undergoing a US$550
million investment from the US Government. The investment aims to secure
critical minerals across central Africa to be exported via the port of Lobito
and is anticipated to become one of Africa's most important rail transport
systems.

 

 Several kilometres of overhead powerlines, together with an underground
water supply and effluent disposal system have been installed ahead of the
arrival of the 350-person modular camp, which has been assembled at
Johannesburg and is being relocated to site. The camp will be the primary
operations base for the construction team.

 

 Agricultural demonstration plots have been established by South African
agriculture consultants, Vuna Agri, as part of the Livelihood Restoration
Programme. The demonstration plots have an area of nine hectares and have now
successfully completed their first full season.  The Livelihood Restoration
Programme was established to provide replacement land for any displaced
farmers and additionally to provide a training base for those persons affected
by the project to develop their agricultural skill sets. 

 

 

The objective is to help local growers and farmers create healthy and
sustainable agro-ecosystems, boosting household income in nearby communities,
whilst enhancing overall food security. This ongoing programme is being
conducted in collaboration with local universities with a view to continually
improving farming practices.

 

Tim George CEO commented: "We now have over 50 engineering contractors and
Longonjo staff working on site in preparation for the commencement of main
construction. There has been a very positive reaction to the activities on
site amongst the local community, in particular with the creation of well-paid
jobs and the successful implementation of the first phase of the livelihood
restoration programme.

 

We have a strong team supporting the main construction which is being manged
by MCC a leading project management team with a track record of delivering
projects across Africa, including Angola.  ADP, the main contractor is an
African minerals specialist in the detailed design, construction and
commissioning of modular mineral processing plants with extensive development
experience in Angola."

 

About Longonjo

 

The electrification of motive power through EVs and Wind Turbines is the
biggest energy transition in history and is forecast to generate a demand
growth for magnet metal NdPr of 7.5% CAGR over the next decade.

 

Pensana owns one of the world's largest undeveloped rare earth mines, and one
of only three with a JORC Reserve >100,000 tonnes of NdPr.

 

At full production Longonjo will produce ~5% of world production of NdPr in
the form of an exported mixed rare earth carbonate.

 

The upfront capital cost of US$200 million for the fully permitted mine and
processing facilities is amongst the lowest amongst its peers making Pensana
highly competitive.

 

Pensana also has a fully permitted US$250 million downstream separation
facility at the Saltend Chemicals Park in the Humber Freeport.

 

Financing for each of the Longonjo and Saltend projects is currently underway.

 

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



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