THIS
ANNOUNCEMENT CONTAINS INSIDER INFORMATION
Pensana
Plc
("Pensana"
or the "Company")
Update
on Longonjo Finance
Pensana
Plc (PRE.LSE) (the "Company")
is pleased to provide the following update on the debt finance
component of the Longonjo rare earth project:
-
Leading Pan-African bank
Absa Bank Limited, acting through its Corporate and Investment
Banking Division ("Absa"),
has conditionally approved a credit term sheet for its 50%
participation in an approximately US$160
million syndicated loan facility ("the
Facility"), subject to the
conclusion of definitive loan documentation and the fulfilment of
conditions precedent contained therein as well as obtaining
political and commercial risk insurance cover from a reputable
political risk insurer on Absa's exposure under the
Facility.
-
The Facility will provide
senior funding for the Phase 1 development of the Company's
Longonjo rare earth mine ("Longonjo")
in Angola through its 84% owned
subsidiary Ozango Minerais SA ("Ozango").
-
The debt financing will
look to deliver approximately 60% of all project funding for
Longonjo with the balance (40%) funded through equity provided at
the Ozango level.
Pensana
Chairman, Paul Atherley,
commented:
"We are grateful for
the work undertaken by the Absa team in providing the Longonjo
project with a conditional commitment to its share of the
US$160 million debt funding
requirement for the Longonjo project.
This is an important
step towards finalising funding for a project which will have a
major positive impact on the community, creating
over 600
high value jobs of which over 50% are expected to be allocated to
young people as well as supporting local businesses and
farmers.
Once in full
production the project will create an estimated 2,400 direct and
indirect jobs and will produce around 5% of the world's magnet
metal rare earths used for wind turbines and electric
vehicles"
The agreed term sheet
follows the successful completion of a detailed technical,
marketing, environmental and fiscal due diligence process and
conditional approval of the loan by Absa's credit committee, with
the legal due diligence process to be finalised.
About
Longonjo
Pensana
has spent over US$70 million over the
past six years on exploration, technical and environmental studies
on the Longonjo rare earth project in the Huambo district of
Angola approximately 350
kilometres Southeast of the capital Luanda.
The
company has successfully delineated one of the world's largest
undeveloped magnet metal rare earth deposits.
The
electrification of motive power is arguably the biggest energy
transition in history and needs rare earths for permanent
magnets.
Once in
full production the mine will produce ~5% of the world's production
in the form of a high value mixed rare earth carbonate, capable of
being converted into permanent magnets for electric vehicles and
offshore wind turbines.
The
project will cost over US$325 million
to bring into full production and over its 20 year life we will
spend over US$2.3 billion in
operating expenditure, much of it spent locally. The project will
generate over US$6 billion in export
revenue and importantly will contribute over US$1 billion of tax to regional and national
treasuries.
The
project will create over 600 high value jobs of which over 50% are
expected to be allocated to young people. Once in full production
the investment will create an estimated 2,400 direct and indirect
jobs and will support local businesses and farmers.
We are
committed to developing the mine to the very best international
standards with the highest level of community engagement and have
published a blueprint for sustainable rare earth development which
is available on our website.
Pensana_Blueprint_for_Sustainable_Rare_Earths.pdf
The team's
efforts were recognised in 2022 when we received an award by
S&P Green Bond Rating Agency CICERO and more recently, we were
awarded a Gold Medal by EcoVadis, a leading sustainability ratings
provider, placing it among the top 5% of the companies
assessed.
It has
been independently estimated that the mine, which is powered by
hydroelectricity and has direct access to the Atlantic Port of
Lobito via the Lobito Corridor rail line will save over 4 million
tonnes of CO2 emissions - the carbon equivalent of replacing 1.5 GW
of fossil fuel electricity generation.
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
