Pensana PLC shares soared 38% after announcing $268 million in financing for the Longonjo rare earth project in Angola. This funding includes a $160 million loan and $92 million in equity, enabling the project to produce critical materials for clean energy. Chairman Paul Atherley emphasized the project’s potential to create jobs and foster local business growth.
Pensana PLC has experienced a significant surge in its shares, which rose by 38% in early trading on March 18, 2025. This remarkable increase follows the announcement that the company has secured full financing amounting to $268 million for its Longonjo rare earth project located in Angola.
The financing package is composed of a $160 million loan facility led by the Africa Finance Corporation (AFC) and Absa Bank, complemented by $92 million in equity and convertible loans from Angola’s Sovereign Wealth Fund (FSDEA) and AFC. This robust financial backing enables the project to advance toward production.
Longonjo is anticipated to yield 20,000 tonnes of high-value rare earth carbonate each year, a critical resource for the manufacturing of electric vehicles and wind turbines. Once fully operational, the mine is projected to contribute significantly to the world’s supply of rare earth magnet metals, accounting for 5% of the total.
Paul Atherley, Chairman of Pensana, described the securing of financing as a “transformational step” for the project. He underscored the project’s potential to create over 2,400 jobs, thus supporting local businesses in Angola. Additionally, with direct access to the Lobito rail corridor, Longonjo is well-positioned to play a vital role in the global clean energy transition.
Following the announcement, Pensana’s stock advanced by 10.55 pence to a new price of 38.45 pence, reflecting investor confidence in the project and its future prospects.
In summary, Pensana PLC’s securing of $268 million in financing for the Longonjo rare earth project has resulted in a substantial increase in share value. The project promises significant production of rare earth materials essential for clean energy technologies, alongside substantial job creation. Its strategic location enhances its potential impact on the global market.
Original Source: www.proactiveinvestors.co.uk
