REG-Pensana Plc: Technical Assistance Grant from the US International Development Finance Corporation and Reduction of Board Size

PensanaAnnouncement

25/09/2024 11:00

THIS ANNOUNCEMENT CONTAINS INSIDER INFORMATION


Pensana Plc

("Pensana" or the "Company")

Technical Assistance Grant from the US International Development Finance
Corporation and Reduction of Board Size

 

Pensana Plc (PRE.LSE) is pleased to announce that it has secured $US 3.4
million of Technical Assistance grant funding (Grant Funds) from the U.S.
International Development Finance Corporation (DFC), America’s development
finance institution.

 

The Grant Funds will support technical assistance activities in the form of
feasibility studies for doubling the capacity of the existing Longonjo mine
design, addition of downstream refining in Angola as well as test work for the
development of the Coola project orebodies.

 

The Technical Assistance program is part of the US Better Utilization of
Investments Leading to Development (BUILD) Act, which is used to provide
advice and financial assistance and prepare future deals for the DFC to offer
further financial support stimulating development.

 

The Grant Funds have been earmarked for specific projects which have the
potential to receive later loan funding for any necessary capital, contingent
on the successful completion of associated feasibility studies, as follows: 

 
* Facilitate the study for an increase of the current design run-of-mine
throughput of the Longonjo Processing plant in Huambo, Angola from 800ktpa to
1.5mtpa and the resultant Mixed Rare Earth Carbonate (MREC) product from
20ktpa to 40ktpa.
* Feasibility study to determine the capital and operational costs of further
MREC beneficiation in Angola through a REE Separation Plant.
* Completion of the metallurgical test work program underway on the Coola
concession orebodies with initial focus on the surface Sulima West laterite
deposit to accelerate plans to use this as an additional feedstock to the
Longonjo Processing Plant.
 

The Grant Funds are to be equally matched by Pensana contributions over the
next 27 months.

 

David Hester, DFC’s Managing Director of Technical Assistance, commented -
“DFC is pleased to support such an impactful project that aligns with our
priority of building more diverse, resilient, and sustainable critical mineral
supply chains. This project demonstrates DFC’s commitment to fostering
growth and economic development in the region”.

 

Tim George, Pensana CEO commented - “The participation of DFC secured
during their visit to Longonjo, alongside our recently announced relationship
with Hanwa, recognises the significant further development potential of both
the Longonjo and Coola Projects and a path to secure the longer term future
funding requirements.”

 

About the U.S. International Development Finance Corporation

 

The U.S. International Development Finance Corporation (DFC) is America’s
development finance institution. DFC partners with the private sector to
finance solutions to the most critical challenges facing the developing world
today, investing across sectors including energy, healthcare, critical
infrastructure and technology. DFC also provides financing for small
businesses and women entrepreneurs to create jobs in emerging markets. DFC
investments adhere to high standards and respect the environment, human
rights, and worker rights.

 

About Longonjo

 

The electrification of motive power through EVs and Wind Turbines is the
biggest energy transition in history. Adamas Intelligence forecasts that the
global demand for rare-earth magnets will increase at a CAGR of 8.7% from 2024
to 2040.

 

Pensana owns one of the world's largest undeveloped rare earth mines, one of
only three with a JORC Reserve >100,000 tonnes of NdPr. Once in full
production the Longonjo project located in Angola near Huambo on the Lobito
Corridor will produce ~5% of world production of NdPr in the form of an
exported mixed rare earth carbonate.

 

The upfront capital cost of US$217 million for the fully permitted mine and
processing facilities is amongst the lowest amongst its peers making Pensana
highly competitive.

 

Pensana has recently been awarded a Gold Medal by EcoVadis, a
leading sustainability ratings provider, placing it in the top 5% of the
companies assessed.

The ratings by EcoVadis are widely used by the automotive and offshore wind
OEMs to monitor the ESG credentials of potential suppliers and are based on a
detailed assessment of operations in the areas of environment, sustainability,
procurement, labour and human rights and ethics.

The award follows the award by S&P Bond Rating Agency CICERO in 2022 which
rated the Company’s operations as Light Green with Good Governance.

Pensana will continue to operate under the EcoVadis tracking and reporting
system, as leadership in global sustainability is critical to its long-term
growth strategy.

Pensana’s Blueprint for Sustainable Rare Earths, demonstrating our strategic
commitment to ESG, can be found here
(https://pensana.us11.list-manage.com/track/click?u=74510681a1bb7db89c47fee65&id=a641020a77&e=badae3e7b5).

 

Reduction of the Board

 

The Company has been in discussions around the need to restructure the size of
the Company’s Board so as to align it more appropriately with its current
market capitalization. Non-Executive Directors Jeremy Beeton and Baroness
Lindsay Northover have accordingly offered to resign from the Board and their
resignations have been accepted. The Company extends its heartfelt gratitude
and thanks to both Lindsay and Jeremy for the valuable support and guidance
that they have provided since their respective appointments to the Board. Both
Jeremy and Lindsay will remain engaged with the Company in an ongoing advisory
capacity.

 

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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