REG-Pensana Plc: US$165 million Strategic Investment to support U.S. Mine to Magnet strategy
Today 07:02
17 April 2026
THIS ANNOUNCEMENT
CONTAINS
INSIDE
INFORMATION
Pensana Plc
("Pensana"
or
the
"Company")
US$165 million
Strategic
Investment
to
support
U.S.
Mine to
Magnet
strategy
Pensana (PRE.LSE) is pleased to confirm receipt of the first tranche of US$15
million from Cascade Natural Resources Limited ("Cascade") as contemplated
under the US$165 million Strategic Investment ("Strategic Investment")
announced on 4 March 2026.
Under the terms of the Strategic Investment, in support of the development of
the Company's U.S. Mine-to-Magnet strategy, Cascade will
advance US$165 million to Pensana and
its group companies
by way of:
* Investment of US$15 million into Pensana by way of a subscription
for 13,992,537 million new ordinary
shares at 80 pence per share representing a 3.8 % interest in the Company.
* Investment of US$150
million into the
Company's wholly
owned subsidiary Sable
Min Unipessoal Lda ("Sable") which is a majority
shareholder in Ozango Minerais S.A. ("Ozango") the developer of the Longonjo
Rare Earth Mine for a 38.2% interest in Sable.
* As a result of
the Strategic Investment
Cascade will own 3.8% of
Pensana and 38.2%
of Sable.
Pensana Chairman Paul Atherley commented "
We very much welcome the investment by Cascade which will
enable us to continue the development of the Longonjo mine, add the heavy rare
earth circuit and expand the resource base to a target of one billion tonnes
making it one of the largest rare earth mines ever developed.
A recent report from the International Energy Agency has highlighted the need
to build a robust and resilient international rare earth supply chain to
reduce the world's reliance on China to avoid $6.5 trillion of potential
economic cost of supply disruption.
With construction well underway and first production scheduled for 2027 our
investment in Longonjo and our plans to establish a fully integrated U.S. mine
to magnet supply chain will be an important step in securing this supply."
Alongside the proposed
US$160 million ABSA
debt funding package
(U.S. EXIM Guaranteed)
the Strategic Investment will
provide for the
construction of the
Longonjo mine, including
execution of the
recently announced drill programme to increase the resource to a target of one
billion tonnes and the construction of the HREE recovery facility ahead of
Longonjo's first production scheduled for 2027 as well as downstream
development initiatives, the costs associated with the proposed NASDAQ listing
and all corporate costs.
ABG Sundal Collier, a leading independent Nordic investment bank, has acted as
Pensana's financial advisor for the Strategic Investment.
Application will be made for the 13,992,537 New Ordinary Shares to be admitted
to the Official List and to trading on the Main Market of the LSE and
admission is expected to occur on the LSE on or about 08:00 on 27 April 2026.
These shares will rank pari passu
with the existing Ordinary Shares in issue.
Following this issue, the Company's issued share capital will consist of
353,515,226 Ordinary Shares. No shares are held in treasury.
Therefore, the total number of voting rights of the Company will be
353,515,226.
About Cascade
Cascade is an Investment Fund backed by specialist family offices and major
sovereign funders, chaired by Lloyd Pengilly, the former-Chairman of JP Morgan
Africa and JP Morgan's Metals & Mining division who will be invited to join
the Pensana Board along with one other Cascade nominee on completion of the
Strategic Investment.
About Pensana
Pensana is developing one of the world's largest and highest-grade magnet
metal rare earth mines which will produce initially 20,000
tpa of a clean high value MREC including both LREE and HREE. The plan is to
expand production to
40,000 tpa of
MREC once initial
operations have been
established.
The Longonjo operation will extract, concentrate, calcine and chemically
refine the free dig material to produce a
high-value MREC which
will be railed 273
kilometers in
containers to the
Atlantic port of
Lobito for export.
Pensana is looking to
establish a world
class fully integrated
mine-to-magnet supply
chain in partnership with U.S. partners
and with support from U.S. Government.
The Longonjo mine is
located adjacent to
the Lobito rail
corridor approximately 60
kilometers west of
the provincial capital of Huambo in central Angola.
The project is currently under development, comprises an open pit,
concentrator and recovery plants, tailings storage facility (designed to meet
the requirements of the Global Industry Standard on Tailings Management),
process water supply, bulk power supply, mine infrastructure, workshops,
offices, accommodation village, recreational facilities, and other associated
infrastructure.
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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