Name of the Project
Longonjo neodymium/praseodymium project.

Location
Huambo, Angola – 4 km from a modern rail line leading directly into the Port of Lobito in the Atlantic Ocean.

Project Owner/s
Rare earths developer Pensana Rare Earths holds an 84% interest in Longonjo through its 84% holding in Angola-registered company Ozango Minerais, which, in turn, owns 100% of the mining licence.

The Angolan government holds a 10% interest and the company’s Angolan partners the remaining 6%.

Project Description
Pensana has successfully delineated a near-surface Joint Ore Reserves Committee-compliant reserve of 22-million tonnes grading 3.04% total rare-earth oxides (TREOs) containing 139 457 t of neodymium/praseodymium (NdPr) oxides, making it one of the world’s largest and highest-grade, undeveloped magnet metal rare-earth deposits, with a mine life exceeding 20 years.

The mine execution plan is based on a staged development of the mine and processing facilities.

Initial production will be 20 000 t/y of a highly marketable clean mixed rare-earth carbonate (MREC), including light rare-earth elements and heavy rare-earth elements. A proposed second phase expansion will result in production increasing to 40 000 t/y of MREC containing 14 000 t of TREOs, and up to 4 400 t of NdPr oxides. This equates to about 5% of the worldwide production of NdPr oxides a year for downstream processing or sale on the international market.

Initial feedstock will be shipped as a clean, high-purity mixed rare-earth sulphate to Pensana’s Saltend rare earth oxide separation facility, in the UK.

Potential Job Creation
The project is expected to create 600 high-value jobs, of which more than 50% are expected to be allocated to young people.

Once in full production, the project will create an estimated 2 400 direct and indirect jobs.

The workforce is expected to increase towards a peak of about 750 personnel in 2026.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Capital cost is estimated at $217-million, including contingencies, which Pensana claims is among the lowest for rare earth developments of this scale.

Planned Start/End Date
Main construction started in May 2025. Longonjo is expected to be commissioned in 2027, producing 20 000 t/y of mixed MREC, with a planned expansion to 40 000 t/y once initial operations have been established.

Latest Developments
Global rare earths mining investment platform Cascade Natural Resources has increased its previously announced investment of $100-million in Pensana to $165-million, in support of the development of the company's US mine-to-magnet strategy.

Cascade intends to advance the strategic investment in Pensana and its group companies by way of an investment of $15-million in Pensana through a subscription of 13.55-million new ordinary shares at 80p a share.

This will coincide with the investment of a further $150-million in the company's wholly owned subsidiary Sable Min Unipessoa, which is a majority shareholder in Ozango Minerais – the developer of the Longonjo rare earths mine.

As a result of the strategic investment, Cascade will own 3.8% of Pensana and 38.2% of Sable. The investment remains subject to long-form documentation and completion, which are expected in the coming weeks.

Alongside the proposed $160-million Absa debt funding package, guaranteed by the US Export-Import Bank, the strategic investment will provide for the construction of the Longonjo mine, including execution of the recently announced drill programme and heavy rare-earth element recovery facility, early downstream development initiatives, the costs associated with Pensana’s proposed Nasdaq listing and corporate costs ahead of Longonjo's first production.

Independent Nordic investment bank ABG Sundal Collier has acted as Pensana's financial adviser for the strategic investment by Cascade.

Based on the structure of the revised strategic investment, Pensana has indicated that the directors currently have sufficient authority to issue the 13.55-million ordinary shares in Pensana to Cascade, free of preemption rights.

Key Contracts, Suppliers and Consultants
ADP (main contractor); MCC (main construction); NCP International (equipment); Bushtec (accommodation facilities); ProProcess Engineering (modular process units); Grupo Nov (contractor); Deugro (international procurement and logistics); Lycopodium Group and SRK Consulting (project delivery partners); and ABG Sundal Collier (Pensana’s financial adviser).

Contact Details for Project Information
Pensana Rare Earths, email admin@pensana.co.uk or ir@pensana.co.uk.