Pensana Secures $268M Financing Package to Advance Longonjo Rare Earth Project
Pensana (LSE: PRE) has confirmed a comprehensive financing package to fully fund construction of its flagship Longonjo NdPr (neodymium-praseodymium) project in Angola, positioning the company as a significant player in the global rare earth supply chain.
Financial and Corporate Highlights
The total funding package amounts to approximately US$268 million, consisting of around US$160 million in senior debt facilities — including US$81.2 million from AFC and US$78.8 million from ABSA — representing roughly 60% of the capital required for Phase 1 development.
Equity and subordinated financing includes US$38 million from the Angolan Sovereign Wealth Fund (FSDEA) via a mix of equity and convertible loan, and US$54.9 million from AFC in the form of a convertible loan.
For the six months ended 31 December 2024, Pensana reported a total comprehensive loss of US$3.19 million, compared with US$3.66 million in the prior corresponding period. The net loss attributable to shareholders was US$2.90 million. Net assets stood at US$48.26 million, down slightly from US$50.96 million at 30 June 2024.
Cash decreased by US$1.48 million over the reporting period, reflecting ongoing project development expenditures. The company now has 302,462,465 ordinary shares in issue, with the top 20 shareholders collectively holding approximately 91% of the issued capital.
Longonjo Project Progress
During the reporting period, Pensana completed several early works at the Longonjo site, including construction of a 350-person accommodation camp, installation of site power and water systems, rehabilitation of access roads, and development of agricultural demonstration plots under its Livelihood Restoration Programme.
The capital cost for Phase 1 development is estimated at US$217 million, covering the concentrator plant, tailings storage, utilities, and associated infrastructure.
Pensana has also signed a non-binding memorandum of understanding with Japanese trading house Hanwa for the supply of 20,000 tonnes per year of mixed rare earth carbonate (MREC) over an initial five-year period, with scope to expand into downstream offtake of separated oxides and metals once processing facilities are in operation.
In addition, the company secured a US$3.4 million technical assistance grant from the US International Development Finance Corporation (DFC). The grant will fund feasibility studies for a Stage 2 expansion that would double production capacity to 40,000 tonnes per year of MREC, including 4,200 tonnes per year of NdPr, as well as further exploration work at the Coola project and downstream processing test work in Angola.
Exploration and Downstream Strategy
Pensana continues to advance the Coola exploration project, which contains additional carbonatite targets intended to provide future feedstock for Longonjo.
In parallel, the company is progressing development of the Saltend rare earth processing hub in the UK. Once operational, Saltend is expected to produce approximately 12,500 tonnes per year of rare earth oxides, including 4,500 tonnes per year of NdPr, equivalent to roughly 5% of current global supply. The facility is being designed as a low-carbon, ESG-compliant processing operation.
Outlook
Key priorities over the next 12 months include finalising binding offtake agreements, commencing main construction at Longonjo, and securing early-stage contracts for Saltend. Pensana is targeting commissioning of Phase 1 production in the near term, with first deliveries of MREC aligned to surging global demand for NdFeB permanent magnets used in electric vehicles and wind turbines.
While risks remain around commodity price volatility, construction execution, and permitting timelines, the company is fully funded for Phase 1 development and well positioned to play a leading role in diversifying the rare earth supply chain outside of China.
Source: www.pensana.co.uk
Aleksei Andrievskii is the founder of the ANDRIEVSKII SEA WEALTH family office in Cyprus, a member of the advisory board at Bendura Bank AG, Liechtenstein