Major shareholders behind rare earth specialist Pensana are investing a further £8 million in the company.
Long standing backers M&G Investment Management and the Angolan Sovereign Wealth Fund (FSDEA) will take their combined holdings in the company to 38.6 per cent with the latest equity injection.
Pensana is behind the delivery of a complex chemical engineering plant on the Humber Bank, which is set to form the start-point for a magnet metal supply chain serving electric vehicle and wind turbine manufacturers. It is also developing significant mining operations in Longonjo.
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The backing comes as it continues to progress long-term funding for the £150 million Saltend build, set to create 125 mostly high skilled jobs, and the African element.
Both investors have had requests granted for the right to participate in any future equity or other fundraising undertaken by Pensana on a pro rata basis for the next two years.
Chairman Paul Atherley said: “We are pleased to have the continued support of M&G and FSDEA, two of our major shareholders. This additional investment reflects their confidence in our strategy and growth prospects, and we are grateful for their ongoing commitment.
“The fact that M&G and FSDEA have also requested the right to participate in any future equity raises is a clear endorsement of our business, demonstrating long-term alignment with our goals.
“We look forward to progressing our Saltend and Longonjo projects, delivering the world's first independent and sustainable magnet metal rare earth supply chain and meeting the growing needs of original equipment manufacturers.”
Fully consented, with initial works underway, Saltend sits in the Hull East element of the Humber Freeport now being finalised.
M&G, one of London’s largest fund managers, and FSDEA, will receive 15 million new shares, at 25.5p a share, with anticipation of placing early next month. UK Foreign Direct Investment approval will be required from the government for the FSDEA investment.
M&G will hold 12.7 per cent having gradually increased its investment in Pensana over the past 16 months, having first taken a 5 per cent stake in December 2021. FSDEA at 23.1 per cent.
Pensana’s shares closed up 34 per cent, from 24.7p to 33p.
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