Pensana PLC (LSE:PRE, OTC:PNSPF) shares rose 3.5% after it announced the approval of its Longonjo mixed rare earth carbonate (MREC) product by a major potential customer.
This approval, which follows extensive pilot plant testing in Perth, Western Australia, marks a crucial step forward for its Angolan project.
Scheduled to commence production in 2026, Longonjo is expected to initially produce 20,000 tonnes of MREC, doubling to 40,000 tonnes by 2029 following a planned expansion.
The product boasts a high purity level, containing 50% Total Rare Earth Oxide, of which 24% is the highly sought-after NdPr, with minimal impurities and free of radionuclides.
"We are very pleased to receive this important product quality approval for the Longonjo mixed rare earth carbonate which follows extensive pilot plant test work in Perth, Western Australia," said Pensana chief executive Tim George.
"Our understanding is that there is expected to be a shortage of high quality, clean product coming onto the market in the near future, and this puts us in a strong position when looking to secure offtake arrangements."
Longonjo stands out in the rare earth market, not only for its substantial reserves but also for its competitive production costs. It has a JORC Reserve exceeding 100,000 tonnes of NdPr and an upfront capital cost of US$200 million for the mine and processing facilities.
The stock was up 1p at 29.5p.