Pensana has received approval for a full financing package of approximately $268m for the development of its Longonjo rare earth project in Angola.
The Africa Finance Corporation (AFC), alongside South African bank Absa Bank, has sanctioned an $81.2m investment as a segment of a larger syndicated loan facility, totalling around $160m. This approval is contingent upon the finalisation of definitive loan documentation and the satisfaction of pre-set conditions.
The approved loan facility is set to provide the senior funding needed for the initial phase of the Longonjo rare earth mine’s development, under the management of Pensana’s 84% owned subsidiary, Ozango Minerais. The loan is poised to cover about 60% of the projected costs for Phase 1 of the project.
Additional financial support includes a $15m bridging loan previously supplied by the Angolan Sovereign Wealth Fund (FSDEA), with an extra $38m investment commitment structured as equity and a convertible loan. The AFC is also set to invest $54.9m through a convertible loan. These equity investments will proceed upon the completion of definitive documentation and the satisfaction of necessary conditions.
Pensana chairman Paul Atherley said: “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 six years, Pensana has channelled more than $70m into the exploration and preparatory studies for the Longonjo project, located approximately 350km southeast of Luanda in the Huambo district. The project has a JORC-compliant reserve of 30 million tonnes, featuring a grade of 2.55% Total Rare Earth Oxides (TREO), inclusive of 166,000 tonnes of Neodymium and Praseodymium Oxides (NdPrO). This establishes Longonjo as a leading undeveloped rare earth resource globally, with an operational expectancy of over 20 years.
