Pensana PLC (LSE:PRE, OTC:PNSPF) shares strengthened after announcing a new £2 million fund raise.
M&G Investment Management is investing £1 million alongside ‘strategic investors’, with new shares priced at 35p per share.
Pensana said proceeds will support corporate costs for the next 18 months.
It comes after a major shareholder, FSDEA invested $25 million into Pensana’s 84%-owned subsidiary Ozango to fund the start of construction at the Longonjo rare earth mine, in Angola.
"We are delighted that the company continues to be supported by its major institutional shareholders both at the asset level and at the corporate level,” chair Paul Atherley said in a statement.
Atherley added: “Our focus is on the developments on site where the team is mobilising contractors to commence construction of one of the world's largest and highest grade undeveloped rare earth projects.”
He also highlighted that Longonjo is “fully funded”, benefits from “one of the lowest capital costs”, and has a near-surface deposit with 4% total rare earth oxides (TREO) pencilled in for its first five years of production.
Pensana shares climbed 2.7p or 7.48% to 38.8p.