Business
EPCF Heads of Agreement for Longonjo Project
EPCF Heads of Agreement for Longonjo Project.
About this update from Pensana Plc
[{"type":"text","content":"\n \n \n RNS Number : 4164T\n Pensana Rare Earths PLC\n 20 July 2020\n \n \n \n \n \n \n \n 20\n July 2020\n \n \n \n \n \n \n \n \n Pensana Rare Earths Plc\n \n \n \n \n \n EPCF Heads of Agreement for Longonjo Project\n \n \n \n \n \n Pensana Rare Earths Plc (LSE:PRE ; ASX:PM8) (the \n \"\n Company\n \"\n ) is pleased to announce that it has entered into a heads of agreement with China Great Wall Industry Corporation (\n \"\n CGWIC\n \"\n ) for the purposes of co-operating together for the Company\n '\n s rare earths Longonjo Project in Angola.\n \n \n \n \n \n CGWIC is a company with expertise and experience in international engineering which is actively engaged in a range of engineering projects in Africa. \n \n \n \n \n \n The Company intends to proceed with an engineering, procurement, construction and financing (\n \"\n EPCF\n \"\n ) model for the development of its Longonjo Project to ensure that the design and construction of the processing plant and associated infrastructure is funded through a single arrangement. \n \n \n \n \n \n The heads of agreement establishes the framework for the Company and CGWIC to work together to negotiate and engage in discussions for CGWIC to be engaged as the contractor for the purposes of the engineering, procurement and construction works for the Longonjo Project and for the Company to procure financing for these project works. \n \n \n \n \n \n The heads of agreement contemplates that the Company will seek the proposed debt financing component of the EPCF to be obtained from commercial banks in China with credit insurance from SINOSURE. The Company will seek to obtain such finance on the following indicative terms:\n \n \n · \n debt funding to cover no more than 85% of project development costs (Company to be responsible for funding the remainder); and\n \n \n · \n the term of the facility will depend on the particular terms from commercial banks and the life cycle of the project, but is not expected to exceed 8-10 years.\n \n \n \n \n \n \n \n \n Pensana Chairman Paul Atherley commented: \n \n \n \n \n \n \"We are delighted to enter into this heads of agreement with CGWIC. With Angolan Presidential approval and backing from the Angola sovereign wealth fund, Pensana is rapidly developing Longonjo as the...