HOA Signed For Angola’s Longonjo Project
Pensana Rare Earths Plc (LSE:PRE/ASX:PM8) has entered into a Heads of Agreement with China Great Wall Industry Corporation (CGWIC) to cooperate on Pensana’s rare earths Longonjo Project in Angola.
CGWIC is a company with expertise and experience in international engineering which is actively engaged in a range of engineering projects in Africa.
Pensana intends to proceed with an engineering, procurement, construction and financing (EPCF) model for the development of its Longonjo Project to ensure that the design and construction of the processing plant and associated infrastructure is funded through a single arrangement.
Pensana Chairman, Paul Atherley, said the HoA establishes the framework for the company and CGWIC to work together to negotiate and engage in discussions for CGWIC to be engaged as the contractor for the purposes of the engineering, procurement and construction works for the Longonjo Project and for the company to procure financing for these project works.
The heads of agreement contemplates that the company will seek the proposed debt financing component of the EPCF to be obtained from commercial banks in China with credit insurance from SINOSURE.
“We are delighted to enter into this heads of agreement with CGWIC. With Angolan Presidential approval and backing from the Angola sovereign wealth fund, Pensana is rapidly developing Longonjo as the first major rare earths mine to be brought online in over a decade to help meet the rapidly growing demand for the magnet metals critical for electric vehicles and offshore wind turbines and a range of other applications important for the transition towards a green economy,” Mr Atherley said. “CGWIC brings to the project a successful track record in major project development in Angola and funding from China. We are very much looking forward to working harmoniously with CGWIC and achieving important outcomes for Angola, CGWIC and Pensana’s shareholders.”