Phase 2 expansion is now almost a certainty

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Pensana Plc

("Pensana" or the "Company")

MOU with Toyota Tsusho Corporation for Rare Earth Offtake

Pensana Plc (PRE.LSE) is pleased to announce that it has signed a non-binding Memorandum of Understanding ("MOU") for a rare earth offtake agreement with major Japanese partner, Toyota Tsusho Corporation ("Toyota Tsusho").

Key terms of the MOU include:

A proposed offtake of up to 20,000 tonnes per annum of ultra-clean Mixed Rare Earth Carbonate ("MREC") from the Longonjo mine over a five-year period, with pricing to be agreed. Toyota Tsusho intends to collaborate with Pensana to develop a new, independent, and sustainable supply chain for rare earth materials, utilizing the Indian processing facility operated by its wholly owned subsidiary, Toyotsu Rare Earth India (TREI).Toyota Tsusho is also exploring deeper cooperation with Pensana as both parties jointly assess additional opportunities across the rare earth value chain.
Since 2013, Toyota Tsusho has been processing rare earth materials at its Indian facility and continues to expand operations to meet the growing demand from Japanese magnet manufacturers.

Mr. Tsutomu Aoki, General Manager of Metal Resources Department at Toyota Tsusho, commented:

"This MOU represents a significant step in the development of a global rare earth supply chain-not only to support Toyota Tsusho's direct customer base but also to strengthen and diversify the broader rare earth value chain."

Mr. Paul Atherley, Chairman of Pensana, added:

"This partnership with Toyota Tsusho marks the next strategic step in establishing Longonjo as the most important rare earth development in over a decade."

Signature of the MOU marks another key milestone in Pensana's journey to deliver rare earth products into the global value chain and underscores the Company's commitment to building a resilient and sustainable supply network.

About Toyota Tsusho

Toyota Tsusho Corporation is the trading arm of the Toyota Group, operating globally across a wide range of industries including automotive, energy, metals, chemicals, food, and infrastructure. Established in 1948 it has a strong commitment to sustainability and innovation, and plays a key role in building resilient supply chains and advancing carbon neutrality. Through its subsidiary, Toyotsu Rare Earth India (TREI), the company has been processing rare earth materials since 2013, supporting the growing demand from Japanese magnet manufacturers. Toyota Tsusho is actively engaged in initiatives that contribute to economic development and environmental sustainability worldwide.



About Longonjo

Pensana has spent over US$70 million over the past six years on exploration, technical and environmental studies on the Longonjo rare earth project in the Huambo district of Angola approximately 350 kilometres Southeast of the capital Luanda.

The Company has successfully delineated a near surface JORC compliant reserve of 22 million tonnes grading 3.04% TREO containing 139,457 tonnes of NdPrO making it one of the world's largest and highest grade, undeveloped magnet metal rare earth deposits with a mine life of over 20 years.

The electrification of motive power is arguably the biggest energy transition in history and needs rare earths for permanent magnets.

Initial production will be 20,000 tonnes of a highly marketable clean MREC. A proposed second phase expansion will see production increase to 40,000 tonnes per annum of MREC representing around 5% of the world's production capable of being converted into permanent magnets for electric vehicles and offshore wind turbines.

The Company is committed to developing the Longonjo mine to the very best international standards with the highest level of community engagement and has published a blueprint for sustainable rare earth development which is available on our website. Pensana_Blueprint_for_Sustainable_Rare_Earths.pdf

The team's efforts were recognised in 2022 when Pensana received green bond assurance by S&P Green Bond Rating Agency CICERO and more recently were awarded a Gold Medal by EcoVadis, a leading sustainability ratings provider, placing it among the top 5% of the companies assessed.



The information contained within this announcement is considered by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is Paul Atherley, Chairman.



- ENDS -


For further information, please contact:


Shareholder/analyst enquiries:

Pensana Plc

Paul Atherley, Chairman IR@pensana.co.uk

Tim George, Chief Executive Officer

Rob Kaplan, Chief Financial Officer
 
So this is great news.

But I just find it strange that they are signing up phase 2 when phase one still doesn't have binding off take?
 
So this is great news.

But I just find it strange that they are signing up phase 2 when phase one still doesn't have binding off take?
As I said, World circumstances have changed dramatically in the last six months. Given that by the end of 2026 there will still only be 3 or 4 large mines capable of supplying any significant quantity to the 20-30 Western Car manufacturers. I seriously doubt that anybody capable of producing MREC will have any trouble selling it. Unless China abandons its plans of a magnet monopoly, we are probably going to see a return to those heady days of 2010-2011 which Roskill and Adamas have been predicting for so long.
 
As I said, World circumstances have changed dramatically in the last six months. Given that by the end of 2026 there will still only be 3 or 4 large mines capable of supplying any significant quantity to the 20-30 Western Car manufacturers. I seriously doubt that anybody capable of producing MREC will have any trouble selling it. Unless China abandons its plans of a magnet monopoly, we are probably going to see a return to those heady days of 2010-2011 which Roskill and Adamas have been predicting for so long.

Yep - that is the investment thesis. And I have believed this since i made my first investment in 2020. But it just keeps getting pushed out.......but surely this time.....(See my comments under Core Dump).
 
It looks as if Pensana is going to develop Phase 2 as fast as it can, One of those EXIM 15 yr loans would certainly be well received now.

Today 07:00 GMT

Pensana Plc - MOU with ReElement Technologies to develop a sustainable rare earth supply chain

PR Newswire

LONDON, United Kingdom, June 23
23 June 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION



Pensana Plc

("Pensana" or the "Company")

MOU with ReElement Technologies to develop

a sustainable rare earth supply chain

Pensana Plc is pleased to announce the signing of a Memorandum of Understanding (“MOU”) with American Resources Corporation (NASDAQ:AREC) (“American Resources”) and ReElement Technologies (“ReElement”) a leading U.S. critical mineral refiner supplying the automotive, defense, and advance manufacturing industries in the US.



Key terms of the MOU include:

A shared commitment to develop a sustainable, independent rare earth supply chain to meet rising demand from U.S. and allied defense and commercial industries.A proposed offtake of up to 20,000 tonnes per annum of ultra-clean Mixed Rare Earth Carbonate (“MREC”) from the Longonjo mine over a five-year period, with pricing to be agreed.Integration of ReElement’s advanced refining platform, which offers a high-throughput, low-waste, and cost-effective process to produce ultra-pure separated rare earth oxides.Strategic cooperation to strengthen and secure the global rare earth value chain and explore additional joint opportunities.Leverage of the Lobito Corridor in Angola for low-cost, efficient access to global export markets.

Since 2023, ReElement has been refining rare earth materials for customer validation and for commercial sale at its Noblesville, Indiana facility. The company continues to expand capacity, including major development at its large-scale Marion, Indiana supersite, to meet growing demand from U.S. and allied defense and commercial industries.

Mark Jensen, CEO and Chairman of ReElement, commented, “Our partnership and MOU with Pensana represent a major advancement toward building a true mine-to-magnet global rare earth supply chain. Securing mineral independence requires innovation, not imitation - and legacy solvent-based refining methods simply won’t be competitive or scalable in the modern market.

We had the opportunity to welcome the Pensana team to our facilities recently where we discussed production schedules, quality of product and long term vision. We couldn’t be more impressed by their efforts and the opportunity for our partnership together to completely disrupt the global supply chain for rare earth oxides.

Partnering with Pensana allows us to secure a reliable source of high-quality MREC and further demonstrates our commitment to building a domestic rare earth supply chain that meets the growing needs of U.S. industry."

ReElement’s multi-mineral refining platform is uniquely positioned to unlock this opportunity with efficiency, flexibility, and global collaboration. We are excited to begin working with Pensana immediately.”

Tim George, CEO of Pensana, added, “We are thrilled to begin our collaboration with ReElement. Both teams share a clear vision for establishing an efficient, scalable, and resilient supply chain for magnet-metal rare earths – critical to the U.S. and allied defense and commercial industries.

This collaboration with ReElement builds on our recently announced offtake agreement for a similar tonnage of MREC with Toyota Tsusho and our plans for downstream magnet metal production in the UK and Asia.

The signing of this MOU marks another important milestone in Pensana’s journey to build a globally diversified and resilient magnet metal rare earth supply chain.”



About American Resources Corporation (NASDAQ: AREC)

American Resources Corporation is a leader in the critical mineral supply chain, developing innovative solutions both upstream and downstream of the refining process. The company and its affiliates focus on the extraction and processing of metallurgical carbon and iron ore, essential ingredients in steelmaking, as well as critical and rare earth minerals for the electrification market and recycled metals.

Leveraging its affiliation and former parent status of ReElement Technologies Corporation, a leading provider of high-performance refining capacity for rare earth and critical battery elements, American Resources is investing in and developing efficient upstream and downstream critical mineral operations. These operations include mining interests in conventional and unconventional sources, recycling, and manufacturing.

American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.

About ReElement Technologies Corporation

ReElement Technologies Corporation, a portfolio company of American Resources Corporation (NASDAQ:AREC), is a leading provider of high-performance refining capacity for rare earth and critical battery elements. Its multi-mineral, multi-feedstock platform technology focuses on the refining of recycled material from rare earth permanent magnets and lithium-ion batteries, concentrated ores and brines, as well as coal-based waste streams and byproducts to create a cost effective and environmentally-safe, circular supply chain. ReElement has developed its innovative and scalable “Powered by ReElement” process which collaboratively utilizes its exclusively licensed intellectual property within its partners’ material processing flow sheets to more efficiently support the global supply chain’s growing demand for magnet and battery-grade products. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.

Learn more about ReElement Technologies’ process and technology here - Video.



About Pensana

The electrification of motive power is arguably the biggest energy transition in history and needs rare earths for permanent magnets.

Pensana has spent US$ 70 million over the past six years on exploration, technical and environmental studies on the Longonjo rare earth project in the Huambo district of Angola approximately 350 kilometres Southeast of the capital Luanda.

The Company has successfully delineated a near surface JORC compliant reserve of 22 million tonnes grading 3.04% TREO containing 139,457 tonnes of NdPrO making it one of the world’s largest and highest grade, undeveloped magnet metal rare earth deposits with a mine life of over 20 years.

The Company has recently received approvals for the full financing totaling circa US$ 268 million for the Longonjo rare earth project. The Board of the Africa Finance Corporation has approved its US$ 81.2 million participation in an approximately US$ 160 million syndicated loan facility alongside major South African bank Absa Bank Limited.

The facility will provide senior funding for the Phase 1 development of the Company’s Longonjo rare earth mine (“Longonjo”) in Angola through its 84% owned subsidiary Ozango Minerais SA.

The Phase 1 production will be 20,000 tonnes of a highly marketable clean MREC. The proposed second phase expansion will see production increase to 40,000 tonnes per annum of MREC representing around 5% of the world’s production capable of being converted into permanent magnets for electric vehicles and offshore wind turbines.

The investment will generate hundreds of local high value jobs, give work to many local businesses and once in production will generate substantial fiscal returns for the Government of Angola. The downstream development of the mine and processing facilities to a mixed rare earth carbonate go beyond the conventional dig and ship approach

The Company is committed to developing the Longonjo mine to the very best international standards with the highest level of community engagement and has published a blueprint for sustainable rare earth development which is available on our website. Pensana_Blueprint_for_Sustainable_Rare_Earths.pdf

The team’s efforts were recognised in 2022 when Pensana received green bond assurance by S&P Green Bond Rating Agency CICERO and more recently were awarded a Gold Medal by EcoVadis, a leading sustainability ratings provider, placing it among the top 5% of the companies assessed.

The information contained within this announcement is considered by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is Paul Atherley (Chairman).

-ENDS-

For further information, please contact:

Shareholder/analyst enquiries:

Pensana Plc

Paul Atherley, Chairman

IR@pensana.co.uk
 
I think the management team at Pensana should be congratulated for how well they are pushing this project forward.

Getting MOUs (that is plural) on phase 2 when phase 1 offtake is not even binding….its amazing!!
 
I think the management team at Pensana should be congratulated for how well they are pushing this project forward.

Getting MOUs (that is plural) on phase 2 when phase 1 offtake is not even binding….its amazing!!
Possibly an advantage of not being a big company, the executive team seem to be doing the hard work themselves, instead of sending out teams of negotiators lacking the authority to close on a deal.
 
I guess also having the backing of their majority shareholders helps. Who would be the main owners that would be giving this go ahead for construction?

Normally, if FID involves the issuance of more shares (inexchange for equity contribution)...this would require a shareholder vote.....but I guess there has been no issues of new shares.....so no need for a vote?
 
The page was posted this week (mid-late June 2025), aligning almost exactly with:

  • The MOU announcement between Pensana and RE Element Technologies
  • Growing signals of U.S. institutional interest behind the scenes
📌 What it says:
  • $3.4M technical assistance grant to support feasibility for both Stage 1 (20,000 tpa) and Stage 2 (40,000 tpa)MREC production
  • Emphasis on local refining in Angola, not shipping concentrate to China
  • Uses Lobito Corridor rail to Lobito Port
  • Frames Longonjo as critical to U.S. national security, citing China’s dominance
🧩 Why it matters:
  • DFC only publicly profiles projects that are moving forward
  • The publication date is telling — just days ago
  • Strong suggestion that Longonjo and the refining component are now part of a coordinated U.S. critical mineral strategy
🤔 There’s also speculation (unconfirmed) that additional U.S.-linked funding may follow, potentially linked to broader supply chain efforts. The pieces are lining up.

📉 Market has barely reacted — which is... interesting.


Make of it what you will, but this just went from "one to watch" to "already in motion."
 
If they have managed to get US funding...that is massive. And would continue to add to the great way managment seem to be navigating this project.

We would love to interview them. They seem to be doing what others cannot in this sector.
 
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