Pensana PLC (LSE:PRE, OTC:PNSPF) shares traded higher in Monday’s early deals, after it announced the signing of an offtake partnership with Japanese firm Hanwa.
A non-binding memorandum of understanding (MOU) envisages the offtake of up to 20,000 tonnes per annum (tpa) of mixed rare earth carbonate from Pensana’s Longonjo mine in Angola.
It would be a five-year deal, though the pricing terms have yet to be finalised.
“We are delighted to be working with Hanwa with a view to establishing a long-term and sustainable supply of high-quality magnet metal products from our Longonjo operations in Angola,” Pensana chair Paul Atherley said in a statement.
Hanwa, a Japan-based trading company, is expected to assist in marketing and distributing the material globally.
Additionally, Hanwa is considering deeper cooperation with Pensana through potential investments and financial support for key projects – such as its Coola and Sulima West projects.
At 14.14p, Pensana shares were up around 4% but initially started near 15p.