Pensana secures US$268 million for rare earth project

Highlights

• The Board of the Africa Finance Corporation (AFC), has approved its US$81.2 million participation in an approximately US$160 million syndicated loan facility alongside major South African bank Absa Bank Limited, subject to the conclusion of definitive loan documentation and the fulfilment of conditions precedent contained therein.
• The facility will provide senior funding for the Phase 1 development of the Pensana’s Longonjo rare earth mine in Angola through its 84% owned subsidiary Ozango Minerais SA.
• The facility will comprise approximately 60% of Phase 1 project funding for Longonjo.
• In addition to the US$15.0 million bridging loan already provided by the Angolan Sovereign Wealth Fund (FSDEA), the balance of Phase 1 funding will be provided through equity, with FSDEA having approved an investment of US$38 million in the form of equity and a convertible loan, and the AFC having approved an investment of US$54.9 million in the form of a convertible loan. The equity investments will be at subsidiary level and are also subject to the conclusion of definitive documentation and the fulfilment of conditions precedent contained therein.

FSDEA Chairman, Armando Manuel, commented:

“The Longonjo Mining Project holds strategic significance for the FSDEA as part of its commitment to advancing the national mining sector. Beyond its substantial economic impact – such as job creation and tax revenues – the project plays a crucial role in establishing in Angola a key segment of the value chain for an industry essential to the global energy transition.

As a key investor, FSDEA has been instrumental in demonstrating the untapped potential of Angola’s mining sector, which remains a critical driver of economic diversification. With the support of ABSA and AFC, this initiative represents a concerted effort to foster sustainable growth, enhance local capabilities, and reinforce Angola’s position in the international mining landscape”.

Read the article online at: https://www.globalminingreview.com/mining/21032025/pensana-secures-us268-million-for-rare-earth-project/