Angolan sovereign wealth fund Fundo Soberano de Angola (FSDEA) has committed to a further $8.6-million equity investment in junior miner Pensana Rare Earths.
The investment will be used to advance the Longonjo project, in Angola, as the first major rare earth mine to be developed in over a decade and to provide general working capital.
The fund has agreed to subscribe for a further 13.5-million ordinary shares to be issued at 0.5021p (A$0.91) a share, conditional upon admission of those shares to the official list and to the LSE’s main market for listed securities.
The subscription will raise gross proceeds of about $8.6-million, and admission is expected to occur on October 1.
Application will also be made for the admission of these shares to the ASX, which is expected to occur on October 2.
Following this issue, the company’s issued share capital will consist of over 203-million ordinary shares.
The investment follows the FSDEA’s earlier investments in the company in March and June this year, and will increase the fund’s equity holding in Pensana from 17.7% to 23.1%.