Pensana Raises $100 Million to Accelerate US Mine-to-Magnet Rare Earth Supply Chain Strategy
London-listed Pensana has completed a $100 million strategic investment to support the company’s US-focused mine-to-magnet supply chain strategy, strengthening funding for the development of its Longonjo rare earth project in Angola.
Under the agreement, the strategic investor has subscribed for 95 million new ordinary shares, subject to confirmatory due diligence on the Longonjo project, shareholder approval for the share issuance, and regulatory approval for the allotment of shares.
In addition to the strategic investment, Pensana will issue a further 2.85 million new ordinary shares to institutional investors, raising an additional $3 million.
Pensana chairperson Paul Atherley said the company was encouraged by the strong backing from a strategic investor aligned with its plans to establish a major US mine-to-magnet supply chain.
He noted that the funding provides critical momentum as the United States moves to restrict the use of Chinese-origin rare earth magnets and materials in US weapons systems from 2027.
The capital will be used to continue development of the Longonjo mine ahead of these policy changes and to position the project as an alternative supplier of neodymium-praseodymium for civilian markets, particularly in light of a planned 25% tariff on Chinese rare earth imports expected to take effect in 2026.
Atherley added that the funds would also support additional drilling programs aimed at extending the Longonjo mine life, with the objective of establishing it as one of the world’s largest rare earth operations.
The expanded program is expected to include the development of co-products such as heavy rare earth oxides, alongside the magnet metals currently planned. Part of the investment will also support Pensana’s planned Nasdaq listing in 2026.
Construction at the Longonjo mine is progressing, with Pensana’s major shareholder, the Angolan Sovereign Wealth Fund FSDEA, recently advancing the remaining balance of a $25 million funding facility.
Once production begins in 2027, Longonjo is expected to rank among the world’s largest producers of light and heavy rare earths, with capacity to support the manufacture of more than 10,000 tonnes a year of rare earth permanent magnets.
Independent Nordic investment bank ABG Sundal Collier acted as Pensana’s financial adviser and intermediary on the strategic investment transaction.
