Pensana Secures US$100 Million Investment for US Mine-to-Magnet Plan

Rare earths-focused Pensana (LSE:PRE,OTC Pink:PNSPF) reported on Tuesday (December 9) that it has concluded a US$100 million subscription with a strategic investor.

According to the company, the deal underpins its broader mine-to-magnet strategy in the US.

The unnamed investor subscribed for 95 million new ordinary shares priced at 0.001 pounds each.

Alongside the strategic investment, Pensana said it will issue 2.85 million new ordinary shares to institutional investors. Priced at 0.80 pounds per share, the placement totals US$3 million.

"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," said Chair Paul Atherley.

He added that the money will also be used to fund further drilling at Longonjo, and to support its 2026 Nasdaq listing.

Longonjo is located adjacent to the Lobito rail corridor, approximately 60 kilometres west of the provincial capital of Huambo in Central Angola. Once operational, the mine could become one of the world’s largest producers of light and heavy rare earths, supporting output of more than 10,000 tonnes of permanent magnets annually.

Construction at the project is progressing, backed by major shareholder FSDEA, Angola’s Sovereign Wealth Fund. FSDEA has already advanced the balance of a US$25 million facility.

Pensana expects Longonjo to begin production in 2027, with expected output of around 20,000 tonnes per annum of clean, high-value mixed rare earth carbonate. The operation is anticipated to produce over 430 high-value processing jobs, with Pensana pledging that more than half of these jobs will be given to young people.

The project is set to create more jobs once it reaches Phase 2 production, estimated at 2,400 direct and indirect jobs.

Phase 2 operations are expected to produce 5 percent of the world’s magnet metal rare earths over a 20 year mine life.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.