Pensana has received a £10mln endorsement from M&G, one of the UK’s largest fund managers.
The fund manager subscribed for new shares in a placing at 81p, which will result in it owning approximately 5% of Pensana.
Michael Stiasny, M&G’s Head of UK Equities, said: “With this strategic investment, we look forward to supporting Pensana in the future as they continue to develop an independent and sustainable rare earth supply chain based in the UK, which is essential as we move towards becoming a net-zero economy.”
Paul Atherley, Pensana chairman, added: “We are delighted with the investment by M&G which comes at an exciting time for the company as we look to establish a world-class processing hub at Saltend chemical park in the UK’s Humber Freeport, to meet the burgeoning demand."
Pensana's mission statement is to build the world's first sustainable magnet metal supply chain to meet the needs of the electric vehicle and offshore wind turbine sectors.
Shares in Pensana rose 8.6% to 83.6p.