REG-Pensana Plc: Update on Longonjo Finance

PensanaAnnouncement

18/03/2025 07:15

THIS ANNOUNCEMENT CONTAINS INSIDER INFORMATION

Pensana Plc

("Pensana" or the "Company")

Update on Longonjo Finance

Pensana Plc (PRE.LSE) (the "Company") is pleased to advise that the Company
has received approvals for the full financing totalling circa US$ 268 million
for the Longonjo rare earth project:
* The Board of the Africa Finance Corporation ("AFC"), has approved its
US$81.2 million participation in an approximately US$160 million syndicated
loan facility ("the Facility") alongside major South African bank Absa Bank
Limited, subject to the conclusion of definitive loan documentation and the
fulfilment of conditions precedent contained therein.
* The Facility will provide senior funding for the Phase 1 development of the
Company's Longonjo rare earth mine ("Longonjo") in Angola through its 84%
owned subsidiary Ozango Minerais SA ("Ozango"). 
* The Facility will comprise approximately 60% of Phase 1 project funding for
Longonjo. 
* In addition to the US$15.0 million bridging loan already provided by the
Angolan Sovereign Wealth Fund ("FSDEA"), the balance of Phase 1 funding will
be provided through equity,  with FSDEA having approved an investment of
US$38 million in the form of equity and a convertible loan, and the AFC having
approved an investment of US$54.9 million in the form of a convertible loan.
The equity investments will be at subsidiary level and are also subject to the
conclusion of definitive documentation and the fulfilment of conditions
precedent contained therein.
FSDEA Chairman, Armando Manuel, commented:

"The Longonjo Mining Project holds strategic significance for the Angolan
Sovereign Wealth Fund ("FSDEA") as part of its commitment to advancing the
national mining sector. Beyond its substantial economic impact-such as job
creation and tax revenues-the project plays a crucial role in establishing in
Angola a key segment of the value chain for an industry essential to the
global energy transition.

As a key investor, FSDEA has been instrumental in demonstrating the untapped
potential of Angola's mining sector, which remains a critical driver of
economic diversification. With the support of ABSA and AFC, this initiative
represents a concerted effort to foster sustainable growth, enhance local
capabilities, and reinforce Angola's position in the international mining
landscape".

President & CEO of Africa Finance Corporation, Samaila Zubairu, commented:

 

"With approximately one-third of the world's rare earth mineral reserves,
Africa is poised to become a cornerstone of the global clean energy
revolution. These minerals are essential for high-tech industries, from
semiconductors to advanced batteries and renewable energy solutions. At AFC,
we recognize the immense strategic value of Africa's resources-not just for
our economic transformation but for securing diversified, sustainable supply
chains for the future. Our partnership with Pensana and FSDEA on the Longonjo
project reflects our unwavering commitment to unlocking Africa's mineral
potential through local value addition, industrial growth, and responsible
mining. By investing in Africa's rare earth sector, we are not only
accelerating regional development but also strengthening global energy
security in line with the aspirations of the Mineral Security Partnership."

 

Pensana Chairman, Paul Atherley, commented:

"We are extremely grateful for the work undertaken by the AFC and
FSDEA teams in providing the Longonjo project with the funding
requirements for the Longonjo project.

The Longonjo project will produce an average of around 20,000 tonnes per
annum of clean high value MREC and will have a major positive impact on the
community, creating over 430 high value processing jobs. Over 50% of the
jobs created are expected to be allocated to young people as well
as supporting local businesses, service providers and farmers.

 

Once in full second phase production, the project will create an estimated
2,400 direct and indirect jobs and will produce around 5% of the
world's magnet metal rare earths used for diverse applications
including wind turbines and electric vehicles."

About Longonjo

Pensana has spent over US$70 million over the past six years on exploration,
technical and environmental studies on the Longonjo rare earth project in the
Huambo district of Angola approximately 350 kilometres Southeast of the
capital Luanda.

 

The Company has successfully delineated a near surface  JORC compliant
reserve of 30 million tonnes grading 2.55% TREO containing 166,000 tonnes of
NdPrO has been delineated making it one of the world's largest undeveloped
magnet metal rare earth deposits with a mine life of over 20 years.

 

The electrification of motive power is arguably the biggest energy transition
in history and needs rare earths for permanent magnets.

 

Once in full second phase production the mine will produce around 5% of the
world's production in the form of a high value mixed rare earth carbonate,
capable of being converted into permanent magnets for electric vehicles and
offshore wind turbines.

 

The Company is committed to developing the Longonjo mine to the very best
international standards with the highest level of community engagement and
have published a blueprint for sustainable rare earth development which is
available on our website. Pensana_Blueprint_for_Sustainable_Rare_Earths.pdf
(https://pensana.co.uk/wp-content/uploads/2022/09/Pensana_Blueprint_for_Sustainable_Rare_Earths.pdf)

 

The team's efforts were recognised in 2022 when Pensana received an award by
S&P Green Bond Rating Agency CICERO and more recently, were awarded a Gold
Medal by EcoVadis, a leading sustainability ratings provider, placing it among
the top 5% of the companies assessed.

 

It has been independently estimated that the Longonjo mine, with access to
hydroelectric power and direct access to the Atlantic Port of Lobito via the
Lobito Corridor rail line will save over 4 million tonnes of CO2 emissions -
the carbon equivalent of replacing 1.5 GW of fossil fuel electricity
generation.

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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