Shares in rare earths developer Pensana PLC (LSE:PRE) rebounded 40% higher to 33p after the company revealed that major shareholders M&G Investment Management and Angola’s sovereign wealth fund have agreed to invest a further US$10mln to increase their combined holdings to 38.6%.
M&G conditionally agreed to invest roughly US$5mln via a placing of 15mln new shares at a price of 27.5p apiece.
Fundo Soberano de Angola (FSDEA) agreed to invest the same amount, with 2.54mln shares being placed firm and the remaining 12.46mln conditional amongst other things upon shareholder approval for the issue of those shares free of pre-emption rights and the Secretary of State confirming that no action will be taken under the UK National Security and Investment Act 2021 in relation to the wealth fund’s acquisition of more than a 25% stake.
Both M&G and FSDEA expressed support for the business plan and have each requested and been granted the right to participate in any future equity or other fundraising on a pro rata basis for the next two years, Pensana said.
Chairman Paul Atherley said the pair’s additional investment “reflects their confidence in our strategy and growth prospects”, and their request to participate in future equity raises “a clear endorsement of our business, demonstrating long-term alignment with our goals”.
Pensana’s shares had almost halved since the start of the year.
It said earlier this month that developing the Longonjo rare earth mine in Angola and the Saltend rare earth separation facility in the UK had a total capital requirement of US$550mln (£444mln), and that it was close to agreeing this via a US$175mln bond issue, a US$220mln strategic equity investment and a US$150mln debt package with a South African bank.