Update on Longonjo Financing and Coola Farm Out
Pensana Plc has provided an update on its Longonjo mine financing, reporting that construction is over 30% complete, with a revised completion date of late 2028 due to ramped-down activities pending financing finalization. The company is in detailed discussions with major shareholders and potential offtake partners to secure debt facilities with ABSA and EXIM, and has accepted a US$2.6 million exploration farm-in offer from Tyranna for the Coola project, which could see Pensana's interest diluted to 20%.
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Further to the recent RNS on the Cascade US$165 million investment with backing from the State of Qatar and the confirmation of USD$15 million received to date the Company can advise that construction at the Longonjo mine is now over 30% complete.
Whilst engagement with Cascade and its backers continues the Company has engaged with its major shareholders and entered into detailed financing discussions with a view to bringing the mine through commissioning and into production.
To this end the Company has had successful detailed negotiations with potential major offtake partners with whom it intends to enter into offtake agreements when required to support the debt facilities with ABSA and EXIM.
During these ongoing engagements, outstanding detailed construction design activities, high-cost site activities and long term procurement items have been ramped down until the financing has been finalised. As a consequence the overall construction schedule is expected to be extended from the previously announced 2028 to late 2028.
The Company will continue to keep stakeholders fully informed on the financing and the mine development as information comes to hand.
Longonjo ranks as one of the world's largest undeveloped rare earth mines and as previously announced the current production plans are based on ore recovered from the top 30 metres of the orebody. Previous drilling has intersected mineralisation to a depth of over 100 metres and remains open at depth highlighting considerable potential to expand resources to support increased mine life and expand future production with reasonable cost at lower comparative risk to greenfield options.
In light of this and after reviewing the exploration potential and access infrastructure costs of the Coola project located 30 km from Longonjo the company has accepted an exploration farm in offer from ASX listed Tyranna (ASK:TYX) under which US$2.6 million will be spent over 3 years with a view to diluting Pensana's interest to 20%. Should there be a successful development of a mine at Coola the option remains for the mine product to be treated at Longonjo.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.