Pensana to advance Longonjo rare earth project
Pensana Plc is set to advance the Longonjo rare earth project in Angola following a successful secure of financing for the project.
The funding package of US$268 milliona combination of a syndicated loan and equity investments, which will support the Phase 1 development of the project. The Africa Finance Corporation (AFC) has approved a contribution of US$81.2 million as part of a US$160 million syndicated loan facility in partnership with Absa Bank Limited of South Africa. This loan will cover about 60% of the funding required for Phase 1. Finalization of the loan remains subject to the completion of definitive agreements and the fulfilment of key conditions.
Longonjo rare earth project
In addition to the loan facility, the Angolan Sovereign Wealth Fund (FSDEA) has already provided a US$15 million bridging loan and has committed to investing an additional US$38 million in the form of equity and a convertible loan. AFC has also approved an investment of US$54.9 million as a convertible loan. These equity investments will be directed toward Pensana’s 84%-owned subsidiary, Ozango Minerais SA, and are subject to the conclusion of formal documentation and the satisfaction of agreed terms.
The Longonjo project holds strategic significance for Angola’s mining sector and economic growth. Armando Manuel, Chairman of FSDEA, highlighted that the project will not only generate employment and tax revenues but also help Angola establish a foothold in the global rare earths supply chain. By collaborating with Absa and AFC, FSDEA aims to unlock the potential of Angola’s mining sector, driving sustainable development and strengthening the country’s position in the international mining industry.
