- The Angolan Sovereign Wealth Fund will become aa strategic investor in Pensana Rare Earths (PM8) after raising over $2 million through a share subscription
- The Wealth Fund purchased over 7 million shares at 27¢ apiece and will hold a 4.8 per cent interest in the company
- The funds raised will be used to progress the Definitive Feasibility Study for Longonjo Project in Angola
- The Longonjo Project is the first major mining project to be developed in Angloa in some time
- The company believes this project will create jobs and economically stimulate the area
- Pensana is down 24.2 per cent on the market today, selling shares for 23.5¢ apiece
Pensana Rare Earths (PM8) has raised over $2 million from Fundo Soberano de Angola (FSDEA).
FSDEA is the Angolan Sovereign Wealth Fund, which currently manages a significant portfolio of investments across various industries, including the mining sector.
The FSDEA has agreed to subscribe for over 7 million Pensana shares for 27¢ each to raise over $2 million before expenses.
On completion, FSDEA will become a strategic cornerstone investor in the company, holding a 4.8 per cent interest.
Funds raised will be used to progress the Definitive Feasibility Study for Pensana's flagship Longonjo Project and to provide working capital.
The Longonjo Project is located in Angola, Central Africa and is the first major mining project to be developed there in some time.
"The project is being developed into one of the world's biggest upstream suppliers of the magnet metals critical to energy transition with strong demand expected from Electric Vehicles and Offshore Wind Turbine manufactures," Chairman Paul Atherley said.
Pensana believes this project will create jobs and economically stimulate Angola.
"We very much welcome the support of the Angolan Sovereign Wealth Fund and look forward to working closely with FSDEA as a strategic cornerstone investor in the development of the Longonjo project," Paul told the market.
Chairman of FSDEA, Snr Carlos Lopes, says that FSDEA plays an important role in supporting Angola's socio-economic development.
"Pensana Rare Earths and the Longonjo Project have the potential to generate long-term financial and sustainable returns in Angola and for the Angolan people," Carlos said.
"We are accordingly delighted with our initial investment in the company and look forward to further supporting and working with the company and its management in the development of this important national project," he added.
Pensana also announced its planned listing on the London Stock Exchange (LSE) is now expected to be completed by the next quarter, depending on market conditions.
Pensana is down 24.2 per cent on the market today, selling shares for 23.5¢ apiece at 12:55 pm AEDT.