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Pensana Rare Earths awarded issue of equity

Pensana Rare Earths Plc has announced that Fundo Soberano de Angola (FSDEA), the Angolan Sovereign Wealth Fund, has recently agreed to make a further equity investment in the company of approximately US$8.6 million.

The investment will be used to advance the Longonjo project as the first major rare earth mine to be developed in over a decade and to provide general working capital.

The investment follows the FSDEA’s earlier investments in the company in March and June 2020 and will increase the fund’s equity holding in the company from 17.7% to 23.1%. These shares will rank pari passu with the existing ordinary shares in issue.

The fund has agreed to subscribe for a further 13.5 million ordinary shares to be issued at £0.5021 pence per share (AUS$0.91 cents per share) conditional upon admission of those shares to the official list (standard segment) and to the London Stock Exchange’s (LSE) main market for listed securities. The subscription will raise gross proceeds of approximately US$8.6 million (AUS$12.23 million).

Accordingly, application has been made for the 13.5 million new ordinary shares to be admitted to the standard segment and to trading on the main market of the LSE (admission) and admission is expected to occur on or around 8 am on Thursday 1 October 2020.

Application will also be made for the admission of these shares to the Australian Securities Exchange which is expected to occur on Friday 2 October 2020.

Following this issue, the company’s issued share capital will consist of 203 095 822 ordinary shares. No shares are held in treasury. Therefore, the total number of voting rights of the company will be 203 095 822.

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the company under the Financial Conduct Authority’s Disclosure and Transparency Rules.

Paul Atherley, Chairman of Pensana Rare Earths, commented: “We are delighted to receive this ongoing support from the Angolan Sovereign Wealth Fund which will ensure the continued rapid development of the Longonjo project as the first major rare earth mine to be brought online in over a decade at a time of burgeoning demand from electric vehicles and offshore wind turbines.”

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