Pensana PLC on Monday posted an updated on its Saltend rare earth separation facility in England and the Longonjo undeveloped rare earth mine in Angola.

The rare earths explorer focused on electric vehicle and offshore wind turbines said it is at an advanced stage in financing the both projects, with the total capital requirement being $550 million. It targets first production in 2025.

Pensana shares were 16% lower at 33.00 pence each in London on Monday afternoon.

‘Both projects are fully permitted, with front end engineering design studies complete and early works programmes well underway on each site led by highly experienced project delivery teams,’ it said. It added that it had been engaged with three parties to provide funding, being a $175 million bond issue arranged by Oslo-based investment bank ABG Sundal Collier Holding ASA, a $220 million strategic equity investor and a $150 million debt package arranged by a South African bank.

Pensana said it signed into a ten-year contract for electricity at around 2 US cents per kilowatt hour for the Longonjo mine in Angola, supplied via a hydroelectrical power grid.

For Saltend, it entered into a memorandum of understanding with Japanese magnet manufacturers for 25% of Saltend’s annual output. Further, it agreed terms with ‘a major European wind turbine original equipment manufacturer’. Meanwhile, it noted it will establish the ‘world’s first’ rare earth processing hub, in the Saltend Chemical Park. It said the hub will be capable of processing third party feedstock imported from around the world.

Last Friday, Pensana warned that it will need ‘additional immediate term funding’ to settle amounts due to suppliers, as wellas additional funding to meet planned expenditure commitments. It also posted half-year results for the six months to December 31 on Friday, which showed that pretax loss widened to $4.2 million, from $4.1 million a year earlier.

Copyright 2023 Alliance News Ltd. All Rights Reserved.