THIS
ANNOUNCEMENT CONTAINS INSIDER INFORMATION
Pensana
Plc
("Pensana"
or the "Company")
Technical Assistance Grant from the US International
Development Finance Corporation and Reduction of Board
Size
Pensana Plc (PRE.LSE) is pleased to announce that it has secured
$US 3.4 million of Technical
Assistance grant funding (Grant Funds) from the U.S. International
Development Finance Corporation (DFC), America’s development
finance institution.
The Grant Funds will support technical assistance activities in the
form of feasibility studies for doubling the capacity of the
existing Longonjo mine design, addition of downstream refining in
Angola as well as test work for
the development of the Coola project orebodies.
The Technical Assistance program is part of the US Better
Utilization of Investments Leading to Development (BUILD) Act,
which is used to provide advice and financial assistance and
prepare future deals for the DFC to offer further financial support
stimulating development.
The Grant Funds have been earmarked for specific projects which
have the potential to receive later loan funding for any necessary
capital, contingent on the successful completion of associated
feasibility studies, as follows:
-
Facilitate
the study for an increase of the current design run-of-mine
throughput of the Longonjo Processing plant in Huambo, Angola from 800ktpa to 1.5mtpa and the
resultant Mixed Rare Earth Carbonate (MREC) product from 20ktpa to
40ktpa.
-
Feasibility
study to determine the capital and operational costs of further
MREC beneficiation in Angola
through a REE Separation Plant.
-
Completion
of the metallurgical test work program underway on the Coola
concession orebodies with initial focus on the surface Sulima West laterite deposit to accelerate plans
to use this as an additional feedstock to the Longonjo Processing
Plant.
The Grant Funds are to be equally matched by Pensana contributions
over the next 27 months.
David Hester, DFC’s Managing
Director of Technical Assistance, commented - “DFC
is pleased to support such an impactful project that aligns with
our priority of building more diverse, resilient, and sustainable
critical mineral supply chains. This project demonstrates DFC’s
commitment to fostering growth and economic development in the
region”.
Tim George, Pensana
CEO commented - “The
participation of DFC secured during their visit to Longonjo,
alongside our recently announced relationship with Hanwa,
recognises the significant further development potential of both
the Longonjo and Coola Projects and a path to secure the longer
term future funding requirements.”
About the
U.S. International Development Finance
Corporation
The U.S.
International Development Finance Corporation (DFC) is America’s
development finance institution. DFC partners with the private
sector to finance solutions to the most critical challenges facing
the developing world today, investing across sectors including
energy, healthcare, critical infrastructure and technology. DFC
also provides financing for small businesses and women
entrepreneurs to create jobs in emerging markets. DFC investments
adhere to high standards and respect the environment, human rights,
and worker rights.
About
Longonjo
The
electrification of motive power through EVs and Wind Turbines is
the biggest energy transition in history. Adamas Intelligence
forecasts that the global demand for rare-earth magnets will
increase at a CAGR of 8.7% from 2024 to 2040.
Pensana
owns one of the world's largest undeveloped rare earth mines, one
of only three with a JORC Reserve >100,000 tonnes of NdPr. Once
in full production the Longonjo project located in Angola near Huambo on the Lobito Corridor will
produce ~5% of world production of NdPr in the form of an exported
mixed rare earth carbonate.
The
upfront capital cost of US$217
million for the fully permitted mine and processing
facilities is amongst the lowest amongst its peers making Pensana
highly competitive.
Pensana has recently been awarded a Gold Medal by EcoVadis, a
leading sustainability
ratings provider, placing it in the top 5% of the companies
assessed.
The ratings by EcoVadis are widely used by the automotive and
offshore wind OEMs to monitor the ESG credentials of potential
suppliers and are based on a detailed assessment of operations in
the areas of environment, sustainability, procurement, labour and
human rights and ethics.
The award follows the award by S&P Bond Rating Agency CICERO in
2022 which rated the Company’s operations as Light
Green with Good
Governance.
Pensana will continue to operate under the EcoVadis tracking and
reporting system, as leadership in global sustainability is
critical to its long-term growth strategy.
Pensana’s Blueprint for Sustainable Rare Earths, demonstrating our
strategic commitment to ESG, can be found here.
Reduction of the Board
The
Company has been in discussions around the need to restructure the
size of the Company’s Board so as to align it more appropriately
with its current market capitalization. Non-Executive Directors
Jeremy Beeton and Baroness
Lindsay Northover have accordingly
offered to resign from the Board and their resignations have been
accepted. The Company extends its heartfelt gratitude and thanks to
both Lindsay and Jeremy for the valuable support and guidance that
they have provided since their respective appointments to the
Board. Both Jeremy and Lindsay will remain engaged with the Company
in an ongoing advisory capacity.
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