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According to the London-listed company the deal underpins its braoder Mine-to-Magnet strategy in the United States.
While the company kept the investor anonymous, it revealed that the investor subscribed for 95 million new ordinary shares of £0.001 each. Alongside the strategic investment, Pensana will issue 2.85 million new ordinary shares to institutional investors.
Priced at £0.80 per share, the placement totals US$3 million.
Chairman Paul Atherley said that the funds will be used to maintain the Longonjo mine development ahead of the US ban on use of Chinese-origin rare earth magnets/materials in U.S. weapon systems from 2027.
“(It will also be used) to provide an alternative source for civilian use of NdPr following the announced 25 percent tariff on rare earths from China starting in 2026.”
The company is also advancing co-products such as heavy rare earth oxides, with funds set to contribute to its planned Nasdaq listing in 2026.
Longonjo is located adjacent to the Lobito rail Corridor, approximately 60 kilometres west of the provincial capital of Huambo in central Angola.
Once operational, the mine could become one of the world’s largest producers of light and heavy rare earths, supporting output of more than 10,000 tonnes of permanent magnets annually.
Construction at the project is progressing, backed by major shareholder FSDEA, Angola’s Sovereign Wealth Fund. FSDEA has already advanced the balance of a US$25 million facility.
Pensana expects Longonjo to begin production in 2027, with an expected output of around 20,000 tonnes per annum of clean high-value (mixed rare earth carbonate).
It will also produce over 430 high-value processing jobs, with Pensana pledging that “more than half” of these jobs will be given to young people.
The project is set to create more jobs once it reaches Phase 2 production, estimated at 2,400 direct and indirect jobs.
Phase 2 operations are expected to produce 5 percent of the world’s magnet metal rare earths over a 20-year mine life.
