Business
Update on Financing and Project Development
Update on Financing and Project Development.
About this update from Pensana Plc
[{"type":"text","content":"\n \n 3 APRIL 2022\n Pensana Plc\n (\"Pensana\" or the \"Company\")\n Update on Financing and Project Development\n Further to the release of the Interim Results on 31 March 2023, the Company provides the following update on Financing and Project Development.\n As reported the Company is at an advanced stage in its financing of both the Saltend rare earth separation facility in the UK and the Longonjo mine in Angola. The total capital requirement is US$550 million. \nBoth projects are fully permitted, with FEED studies complete and early works programmes well underway on each site led by highly experienced project delivery teams.\n The Company has been engaged with three parties to provide the required funding; namely the previously announced US$175 million bond issue being arranged by ABG Sundal Collier, for which the Company has received green bond accreditation from CICERO rating agency, a $220 million strategic equity investor which is before its investment committee and a $150 million debt package being arranged by a South African bank.\n Project Development Timeline\n The funds are required to be put in place between now and the end of the calendar year in order to meet the proposed construction and commissioning schedule with first production targeted in 2025.\n Offtake Arrangements\n The Company has established a direct relationship with the key Japanese magnet manufacturers and has entered into an MOU for 25% of Saltend’s annual production. It has ongoing discussions with Japanese trading houses with direct access to the Japanese automotive sector.\n Terms have been agreed terms with a major European wind turbine OEM and the Company has been shortlisted to supply major US and European automotive OEMs. Offtake discussions with several automotive component manufacturers in the US and Europe are underway.\n The Company is working closely with its customers to establish an independent and sustainable supply chain providing them with a cost effective, fully transparent and an ultra-low embedded carbon range of rare earth products.\n At a time when there is growing public concern about the provenance of rare earth extraction and the resilience of supply chains in general, the Company’s ability to demonstrate, in particular to consumer facing automotive OEMs, that it can provide an independently validated sustainab...