Pensana Plc (LSE:PRE) announced Tuesday that it has secured a $100 million strategic investment to accelerate its Mine-to-Magnet supply chain plans in the United States.
The investor participating in the deal has agreed to subscribe for 95 million new ordinary shares, subject to confirmatory due diligence on the Longonjo project and shareholder approval. In addition, institutional backers will contribute another $3 million through the purchase of 2.85 million new ordinary shares at £0.80 each.
Proceeds will be used to keep development of the Longonjo mine on track ahead of the 2027 U.S. ban on Chinese-origin rare earth magnets used in defence systems. The funding is also intended to help Pensana position itself as an alternative supplier of NdPr for civilian markets as the U.S. prepares to impose a 25% tariff on Chinese rare earths beginning in 2026.
Paul Atherley, Chairman of Pensana, said: “We are delighted with the $100 million strategic investment from an investor which is highly supportive of our plans to establish a major U.S. Mine-to-Magnet supply chain.”
Pensana plans to deploy the capital to extend Longonjo’s mine life through expanded drilling, develop additional co-product streams including heavy rare earth oxides, and progress toward a planned Nasdaq listing in 2026.
Construction at Longonjo continues to advance, supported by the recent release of the remaining tranche of a $25 million facility from Angola’s sovereign wealth fund, FSDEA. Once in operation from 2027, Longonjo is expected to rank among the world’s largest sources of both light and heavy rare earth elements, with capacity to support production of more than 10,000 tonnes of permanent rare earth magnets.
ABG Sundal Collier served as Pensana’s financial adviser on the transaction. Following the admission of the new shares, the company’s issued share capital will total 310,141,435 ordinary shares.
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