THIS
ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Pensana
Plc
("Pensana"
or the "Company")
UPDATE ON CONSTRUCTION ACTIVITIES AT
LONGONJO
Pensana is pleased to provide the following update on activities at
the Longonjo minesite ahead
of main construction.
As previously announced the early-stage development activities are
being funded by a US$15 million
bridging loan provided by FSDEA (the Angolan Sovereign Wealth Fund)
ahead of the main finance.
The significant activities have been the civil works for the camp,
the rehabilitation of the access road to the Longonjo railway
station and the agricultural demonstration plots under the
Livelihood Restoration Programme.
The 4.5 kilometre road linking the site to the Benguela railway
line has been upgraded. The enhanced road features include an
improved roadbed substructure, a redefined road profile and rapid
drainage systems.
Serving as the primary
route for inbound materials during construction and later for
reagent import and the export of Mixed Rare Earth Carbonate in
containers, the road connects the mine to the Longonjo station for
rail access to the port of Lobito for shipping.
The Benguela railway line is part of the Lobito corridor undergoing
a US$550 million investment from the
US Government. The investment aims to secure critical minerals
across central Africa to be
exported via the port of Lobito and is
anticipated to become one of Africa's most important rail transport
systems.
Several
kilometres of overhead powerlines, together with an underground
water supply and effluent disposal system have been installed ahead
of the arrival of the 350-person modular camp, which has been
assembled at Johannesburg and is
being relocated to site. The camp will be the primary operations
base for the construction team.
Agricultural
demonstration plots have been established by
South African
agriculture consultants, Vuna
Agri, as
part of the Livelihood Restoration Programme. The demonstration
plots have an area of nine hectares and have now successfully
completed their first full season.
The
Livelihood Restoration Programme was established to provide
replacement land for any displaced farmers and additionally to
provide a training base for those persons affected by the project
to develop their agricultural skill sets.
The objective is to help local growers and farmers create healthy
and sustainable agro-ecosystems, boosting household income in
nearby communities, whilst enhancing overall food security. This
ongoing programme is being conducted in collaboration with local
universities with a view to continually improving farming
practices.
Tim George CEO commented:
"We
now have over 50 engineering contractors and Longonjo staff working
on site in preparation for the commencement of main construction.
There has been a very positive reaction to the activities on site
amongst the local community, in particular with the creation of
well-paid jobs and the successful implementation of the first phase
of the livelihood restoration programme.
We
have a strong team supporting the main construction which is being
manged by MCC a leading project management team with a track record
of delivering projects across Africa, including Angola.
ADP,
the main contractor is an African minerals specialist in the
detailed design, construction and commissioning of modular mineral
processing plants with extensive development experience in
Angola."
About
Longonjo
The electrification of motive power through EVs and Wind Turbines
is the biggest energy transition in history and is forecast to
generate a demand growth for magnet metal NdPr of 7.5% CAGR over
the next decade.
Pensana owns one of the world's largest undeveloped rare earth
mines, and one of only three with a JORC Reserve >100,000 tonnes
of NdPr.
At full production Longonjo will produce ~5% of world production of
NdPr in the form of an exported mixed rare earth
carbonate.
The upfront capital cost of US$200
million for the fully permitted mine and processing
facilities is amongst the lowest amongst its peers making Pensana
highly competitive.
Pensana also has a fully permitted US$250
million downstream separation facility at the Saltend
Chemicals Park in the Humber Freeport.
Financing for each of the Longonjo and Saltend projects is
currently underway.
The
information contained within this announcement is considered by the
Company to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No.596/2014. Upon the publication of
this announcement via a Regulatory Information Service, this inside
information will be considered to be in the public domain. The
person responsible for arranging for the release of this
announcement on behalf of the Company is
Paul Atherley,
Chairman.
-
ENDS -
For
further information, please contact:
Shareholder/analyst
enquiries:
Pensana
Plc
Paul Atherley, Chairman IR@pensana.co.uk
Tim George, Chief Executive Officer
Rob Kaplan, Chief Financial Officer