By Michael Susin
Pensana said late Tuesday that it has secured a further financing for the development of the Longonjo mine in Angola.
The U.K. rare-earth mining company said that its major shareholder FSDEA, Angola’s sovereign wealth fund, will provide an immediate $15 million loan facility as part of a broader $80 million investment to be used in the development of the mine and for the project debt facility.
The company added that a revised execution plan reduced the upfront capital cost for developing the mine and the processing facilities of $200 million, with around $105 million deferred until year three following commissioning. It added that the required funding could be further reduced following the investment from the Angolan government in energy infrastructure.
“This immediate funding from FSDEA will allow CEO Tim George and the team to accelerate the work on the ground with a view to commencing main construction later in the year with a view to achieving first production in 2025,” Chair Paul Atherley said.
Write to Michael Susin at michael.susin@wsj.com
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