LONDON: Pensana (PRE.LSE) has concluded a US$100 million subscription by a Strategic Investor in support of the Company’s U.S. Mine-to-Magnet strategy.
Under the agreement, the Strategic Investor has subscribed for 95,000,000 new ordinary shares of £0.001 each subject to confirmatory due diligence of the Longonjo project along with shareholder authorisation of the share issue and approval for the allotment of shares to the Strategic Investor.
In addition to the US$100 million investment, 2,850,000 new ordinary shares will be issued to institutional investors at £0.80 per share for a total consideration of US$3,000,000, company announced.
Application will be made for the 2,850,000 new ordinary shares to be admitted to the Official List and to trade on the Main Market of the London Stock Exchange. These shares will rank pari passu with the existing ordinary shares in issue.
Chairman, Paul Atherley commented: “We are delighted with the US$100 million strategic investment from an investor which is highly supportive of our plans to establish a major U.S. Mine-to-Magnet supply chain.
The funds will be used to maintain the Longonjo mine development ahead of the U.S. ban on use of Chinese-origin rare earth magnets/materials in U.S. weapon systems from 2027 and to provide an alternative source for civilian use of NdPr following the announced 25% tariff on rare earths from China starting in 2026, fund additional drilling programs to advance the Longonjo life of mine (LOM) to become one of the largest rare earth mines globally, developing co-products including HREOs alongside the magnet metals currently contemplated and supporting the Nasdaq listing in 2026.
The Longonjo mine construction is advancing well with the Company’s major shareholder FSDEA, the Angola Sovereign Wealth Fund, recently advancing the balance of the US$25 million facility.
Once in production from 2027, Longonjo will be one the world’s largest producers of light and heavy rare earths capable of supporting the production of over 10,000 tonnes of rare earth permanent magnets.”
ABG Sundal Collier, a leading independent Nordic investment bank, has acted as Pensana’s financial advisor and intermediary in the Strategic Investor transaction.