Pensana, via its Angolan subsidiary Ozango Minerais, signed a non-binding terms sheet with a consortium of lenders for a US$156M debt facility.  

The debt facility would be used to finance development of the Longonjo rare earth project, including mining, flotation circuit and refinery facilities. The debt facility would provide coverage for the construction, commissioning and ramp-up period at Longonjo, plus a subsequent four year period, in total spanning up to seven years. 

The non-binding debt facility comes after Pensana released an updated technical report for the Longonjo project earlier in February, which saw capital cost estimates for the project fall to US$217M including contingency. The US$156M debt facility provided by the lending consortium would account for over 72% of projected capital costs, with potential for an additional US$80M in equity by Fundo Soberano de Angola and another party planned to fully finance the project through to commercial production.         

The Longonjo project is scheduled to begin production of mixed rare earth compounds between late 2025 and early 2026, with an initial targeted capacity of 10.0ktpy REO contained in a mixed rare earth compound. A subsequent expansion at Longonjo is targeted to double production capacity beyond 2029 with additional capital requirements of US$105M. Pensana’s planned processing and separation facility in Saltend, UK has lacked announced progress while the company has shifted its attention back to the Longonjo project.