Pensana raises £15m to kickstart construction of Saltend magnet metals plant
Inward investor Pensana has raised £15 million to enable early-stage construction of a rare earth processing facility at Saltend.
The mining operator is pushing ahead with the £100 million complex chemical engineering plant on the Humber Bank, buoyed by support for the venture.
It will create 100 jobs and kickstart a UK supply chain for magnet metals used in electric vehicles and offshore wind turbines.
Chairman Paul Atherley has welcomed strong shareholder support in a premium equity raise.
The main financing for both Saltend and extraction in Longonjo, Angola, is targeted for the fourth quarter of this year.
Initial funds will be used to order equipment and bulk materials, cover fabrication costs, establish site infrastructure and aid working capital requirements.
A 1.7 per cent uplift on the volume weighted average of the London Stock Exchange-listed company was achieved, at 120p.
The Angolan Sovereign Wealth Fund continues to support the company as part of the government’s strategic objective of diversifying its economy away from the oil and gas sector, taking 10 per cent of the 12.5 million new shares.
Mr Atherley said: “This ongoing strong shareholder support is very welcome and will enable us to rapidly establish in the UK the world’s first major rare earth processing facility in over a decade to meet the burgeoning demand from EVs and offshore wind turbines.”
Pensana opted for the PX Group owned site – once part of BP’s global portfolio – after shortlisting several UK locations, and one in Germany.
Planning consent was secured earlier this year and it has recently revealed how it intends to use hydrogen produced on site by fellow inward investor Equinor to recycle existing turbines once they are decommissioned.