Pensana Secures $100 Million Investment to Advance U.S. Mine-to-Magnet Strategy

Pensana Plc (PRE.LSE) has announced a US$100 million strategic equity investment, signaling a major step forward in its ambition to establish a U.S. Mine-to-Magnet supply chain. The funding aims to capitalize on growing demand for rare earth magnets, particularly in the U.S., and to mitigate reliance on Chinese sources.

Under the agreement, the Strategic Investor will subscribe for 95,000,000 new ordinary shares, subject to due diligence of the Longonjo project and shareholder approval. This substantial investment underscores confidence in Pensana's strategic direction and the potential of its Longonjo mine in Angola.

In addition to the strategic investment, Pensana will issue 2,850,000 new ordinary shares to institutional investors at £0.80 per share, raising a further US$3 million. These shares will be admitted to the Official List and trade on the Main Market of the London Stock Exchange, ranking equally with existing shares.

The funds will be strategically allocated to several key areas, including advancing the Longonjo mine development to meet the anticipated U.S. ban on Chinese-origin rare earth magnets in weapon systems by 2027.

The investment will also provide an alternative source for civilian use of Neodymium-Praseodymium (NdPr) following the announced 25% tariff on rare earths from China starting in 2026.

Further, funding will support additional drilling programs to expand the Longonjo mine's lifespan and explore the development of co-products, including Heavy Rare Earth Oxides (HREOs). Pensana also intends to pursue a Nasdaq listing in 2026.

Longonjo mine construction is progressing, supported by the Angola Sovereign Wealth Fund (FSDEA), Pensana's major shareholder, which recently advanced the balance of a US$25 million facility. Production is slated to begin in 2027.

Chairman Paul Atherley stated, “We are delighted with the US$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.” He emphasized the importance of the investment in positioning Pensana as a key player in the rare earth market.

ABG Sundal Collier, a leading independent Nordic investment bank, acted as Pensana's financial advisor and intermediary in the Strategic Investor transaction.

Following admission of the 2,850,000 new ordinary shares, the Company's issued share capital will total 310,141,435 ordinary shares.