THIS
ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Pensana
Plc
Longonjo
Project Debt Finance
Pensana
(PRE.L) (the Company) is pleased to provide the following update on
debt finance for the Longonjo project:
-
The
Company, through its 84% owned subsidiary Ozango Minerais SA
(Ozango), which owns 100% of the Longonjo project, has concluded a
non-binding term sheet (Term Sheet) with the Longonjo lender
consortium for a project finance debt facility
(Facility).
-
The
Facility amount is up to US$156
million with a participation of up to 50% between each of
the lender participants.
-
The
purpose of the Facility is to provide limited recourse senior
secured project finance to fund the Longonjo mine, flotation
circuit and refinery.
-
The
maximum tenor of the Facility is to cover the construction period
and ramp up to full production plus four years to an overall
maximum of seven years.
-
The
Facility is conditional on obtaining guarantees from the relevant
export credit agency for which discussions are well
advanced.
-
The
Company is furthermore in advanced discussions with the Angola
Sovereign Wealth Fund (FSDEA) and a member of the lender consortium
to finalise the US$80 million equity
component of the overall financing package.
-
Conclusion
of the Term Sheet follows the successful completion of a modular
redesign of the fully permitted Longonjo mine and processing
facility, with a total capital expenditure (including 10%
contingency) of US$217 million,
making it one of the lowest amongst
its peers.
-
The
Company is in advanced discussions with several parties for the
offtake of the highly marketable, radionuclide-free mixed rare
earth carbonate (MREC) and has recently received product approval
from one of its potential customers.
-
The
Company expects to be in a position to sign up to 100% of the
production of the high value, clean MREC from the Longonjo
processing facility.
-
FSDEA has
provided a US$15 million bridging
loan facility towards the US$80
million equity investment, which continues to be available
to facilitate early-stage project development and the route to main
finance.
Paul Atherley
Chairman commented:
"We are grateful to FSDEA for its ongoing support and to the
lender consortium for their
work in concluding the US$156 million
debt term sheet to finance the Longonjo rare earths mine and
processing facility.
This
is a major step for the Company in its plans to bring into
production one of the world’s largest undeveloped rare earth
projects.
It is
also an important step for the establishment of an African-based,
independent, supply chain of the metals crucial to the energy
transition, which captures significant value within Angola and creates several hundred long-term
high value jobs within the local community.”
About
Longonjo
The electrification of motive power through Electric Vehicles and
Wind Turbines is the biggest energy transition in history and is
forecast to generate a demand growth for magnet metal NdPr of 7.5%
CAGR over the next decade.
Pensana owns one of the world's largest undeveloped rare earth
mines, and one of only three with a JORC Reserve greater than
100,000 tonnes of NdPr.
Pensana
recently announced that one of its major potential customers has
approved the product qualification specifications for Longonjo’s
proposed MREC product. The Longonjo MREC contains 50% Total Rare
Earth Oxide of which 24% is NdPr with minimal impurities and is
radionuclide-free.
Longonjo
is expected to produce 20,000 tonnes of MREC commencing 2026 and
40,000 tonnes of MREC from 2029 onwards following the planned
expansion.
At full production Longonjo 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.
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