Pensana’s Ozango closes $156 million debt facility for Longonjo project

By Marisa Wong

Los Angeles, Feb. 26 – Pensana plc, through 84% owned subsidiary Ozango Minerais SA, which owns 100% of the Longonjo project, has concluded a non-binding term sheet with a lender consortium for a project finance debt facility of up to $156 million.

The purpose of the facility is to provide limited recourse senior secured project finance to fund the Longonjo mine, flotation circuit and refinery.

The maximum tenor of the facility is to cover the construction period and ramp up to full production plus four years to an overall maximum of seven years.

The facility is conditioned on obtaining guarantees from the relevant export credit agency.

In addition, Pensana said it is in advanced discussions with the Angola Sovereign Wealth Fund and a member of the lender consortium to finalize an $80 million equity component of the overall financing package. The fund has provided a $15 million bridging loan facility towards the $80 million equity investment.

Longonjo is a rare earth mine, the magnet metals of which will be used for electric vehicles and wind turbines.

Ozango is a metals and mineral mining company based in Angola. Parent company Pensana has headquarters in London.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.