ASX-listed Pensana Metals, which plans to also list on the LSE later this year, has raised $5-million through the private placement of 250-million shares at $0.02 a share.
The funds will be spent on the prefeasibility study into the development of its Longonjo neodymium/praseodymium (NdPr) project, in Angola.
“The strong institutional support reflects the interest in rare earths as an exposure to the electric vehicle sector and our ambition to capitalise on Longonjo’s grade and infrastructure advantages to become the world’s next major supplier to this critical sector,” Pensana CEO Tim George said on Tuesday.
The Longonjo project is located near rail, power and port infrastructure, which Pensana says will reduce the project's capital cost and timeline to production.
The company last month reported that drilling at Longonjo had returned some of the highest-grade NdPr mineralisation ever encountered at the project.