• Company plans a $100 million strategic share placement plus $3 million from institutions

• Funds will support mine development and exploration at the Longonjo rare earth project

• Move follows talks with U.S. EXIM Bank as Washington seeks non-Chinese supply chains

Pensana, the London-listed British company, announced on Tuesday, December 9, that it has reached an agreement with a “strategic investor” for a $100 million share placement and intends to raise up to an additional $3 million from institutional investors through a separate offering.

Both transactions, which remain subject to regulatory approval, are aimed at financing the development of the Longonjo rare earth project in Angola. Pensana has not disclosed the identity of the strategic investor. The company said the investor has committed to subscribe to 95,000,000 new ordinary shares with a nominal value of £0.001 each. For the institutional placement, Pensana plans to issue 2,850,000 new ordinary shares at £0.80 per share.

Scheduled to enter production in 2027, Longonjo is set to become Angola’s first rare earth mine. It is expected to produce 20,000 tons of mixed rare earth carbonate (MREC) per year, eventually doubling output to 40,000 tons in a later phase.

Construction began on the site in May, and Pensana says the proceeds from the placements will support mine development and planned exploration programs intended to extend the project’s current 20-year mine life.

These investments add to recently announced financial support for Longonjo. As part of its strategy to build a U.S.-aligned supply chain for the project’s future output, Pensana has said it is in talks with the U.S. Export-Import Bank for a potential $160 million loan. The initiative comes as Washington aims to reduce its reliance on Chinese rare earth supply.

Work continues on the $217 million project, which is also backed by the Angolan Sovereign Wealth Fund (FSDEA). The fund is Pensana’s largest shareholder, holding 26% of the company.

Aurel Sèdjro Houenou