Following its initial investment in March, the Angolan Sovereign Wealth Fund (FSDEA), has invested a further A$7.25-million in rare earths miner Pensana Rare Earths’ Longonjo project in the province of Huambo, Angola.
The funds will advance Pansana’s flagship Longonjo mine, enabling it to complete the engineering design and test work to reach bankable feasibility status later this year, list on the LSE in July, commence exploration on the recently awarded Coola project, also in Angola, and to provide general working capital.
The Longonjo mine has an inferred mineral resource estimate of 240-million tonnes at 1.6% rare-earth elements. The mine is being developed to become a significant upstream supplier of the magnet metals critical to the world's energy transition.
With billions of dollars in post-Covid-19 stimulus going into electric vehicles and offshore wind power generation, there is a looming shortfall in the supply of these magnet metals, says Pensana.
Pensana and the FSDEA are also in discussions regarding the provision of a further $10-million, with the terms to be agreed.
Pensana chairperson Paul Atherley says the ongoing financial support from the FSDEA follows the recent presidential approval for the mining licence and the fiscal terms for the Longonjo project.
Subject to regulatory approvals, the planned listing on the LSE will give Pensana access to the burgeoning environment, social and corporate governance and generalist funds looking to gain exposure to the metals critical to energy transition at a time when billions of dollars are being invested in electric vehicles and offshore wind.