George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
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Thank you Mumbles.
Valuation it is, the structure of the fiancing is
$60 million equity from FSDEA (15 million already forward as a loan, will be converted to equity as part of the 60 million, for $20% of the Ozango limited asset.)
$20 million equity/debt in the form of a Convertible note against Pensana
$120 million debt from Absa.
All in the previous company communications
It sounds as if the risk of not having a finance offer has diminished. The question now seems to be what will be the price for the deal.
The backdrop is encouraging. The Chinese have shown their hand with a recent massive restriction on exports of graphite. Clearly REs are in the frame for restrictions too, either because they need them for their own use or wish to make them a political bargaining chip. Whether that is important to ABSA is another matter.
It also looksasif the finance is going to be $120m debt, and the rest ($100m) mix of equity and royalty finance
I am pleased the due diligence report is out there for everyone to read.
Whilst this technical review has been underway, we have been working closely
with our financiers ABSA, FSDEA and others and we expect to be in a position to
announce the financing arrangements shortly."
This was posted a few months back and recently came across, head of ABSA coverage principle speaking about looking at mineral and metals financing " RARE EATHS" in Africa they are excited about.
ABSA bank of South Africa has been mandated as lead arranger for a US$120 million loan facility, which is expected to include export credit guarantees from ECIC and debt participation from a pan-African multilateral.
https://www.youtube.com/watch?v=O77voL6c4JI
Operative words "to conclude the main finance"
Angolan sovereign wealth fund Fundo Soberano de Angola (FSDEA) is “delighted to see the excellent progress” being made on site, as this is an important project for the entity, FSDEA chairperson Armando Manuel has said.
Pensana Rare Earths and its local subsidiary Ozango Minerais welcomed the full board of FSDEA to Longonjo for a site inspection on January 10. The six members of the board were accompanied by the head of investment and key analysts of the FSDEA.
“[The] FSDEA has financed the acceleration of construction activities to ensure [that] the project maintains momentum while we work with the lender consortium to conclude the main finance,” Manuel has explained.
https://www.miningweekly.com/article/longonjo-neodymiumpraseodymium-project-angola-update-2024-01-19
China/Theo - Please discuss your views on the appropriate board. This board is for Pensana.
Update on Longonjo Financing
The Angolan Sovereign Wealth Fund (FSDEA) is funding
construction activities on site via a US$15 million loan, ensuring
project momentum.
FSDEA and a pan-African multilateral Development organisation
have indicated that they will provide US$80 million in equity at
the Ozango subsidiary level.
ABSA bank of South Africa has been mandated as lead arranger
for a US$120 million loan facility, which is expected to include
export credit guarantees from ECIC and debt participation from
a pan-African multilateral.
High level commercial debt and equity terms at the Ozango level
have been provided with all parties now working towards
completion.
One of the only mine developers to offer a
high value, radionuclide-free product
available for export.
Executed letter of intent for the offtake of
100% of stage 1 production from Longonjo.
Sample qualification underway which will
lead to finalised agreements in Q1 2024.
Nusrat Ghani, Minister of State at the Department for
Business and Trade and Cabinet Office, highlighted that the
Saltend project would be an important step in supporting
the UK automotive industry which employs 780,000
people.
Strong interest in Saltend’s development across a wide range of stakeholders
Recent site visit by representatives of M&G, Automotive Transformation Fund, Cabinet Office
for Investment, Department for Business & Trade, PX Group, Future Humber, Yorkshire Energy
Park, East Riding Council and University of Lincoln.
UK Government also wishes to utilise Pensana’s
relationship with the world’s largest magnet
manufacturer with a view to bringing their next
investment to the UK.
Pensana is partnering with leading energy
provider, Equinor, to develop a low-energy
method for recycling end-of-life wind turbine
magnets using low-carbon Hydrogen produced
from Equinor’s Hydrogen to Humber (H2H) at
Pensana’s Saltend Rare Earth processing facility.
https://pensana.co.uk/wp-content/uploads/2024/01/Corporate-Presentation-January-2024.pdf
Theo, I think you need to answer some questions yourself: If as you now claim you are no longer associated with the Chabad warmongers and are free agent again; perhaps you could get your mate Thomas at REO to post an update as to what the status of Round Top is now ?
When you think of it Jack L is a far bigger failure than PA could ever be, all those years tarting up a project that never had a hope in hell of being profitable, something he would have known after the first round of drilling. And yet he managed to con Joe into pouring his stolen money into it. As they say there is no Honor amongst thieves.
So if you are the X-spurt you claim to be, demonstrate it by giving us your analysis of what happened at Round Top. Then if your explanation is plausible we might then give you some credibility.
Fair enough. Accepted.
Apologies Sundrum.
Theo - Temper, temper.
You wrote, ' I do not recall ever saying anything about administrators.'
I consequently pointed out the fact that you wrote about administrators on 6 separate occasions. As you're dishing out labels, what does that make you?
This....again....was spot on at the time of writing.
Angola bailed them out at high project dilution cost. I remember being berated for suggesting finance would happen below £1. Sp now 20p with project valued at 60p. Not seeing much return unless all goes swimmingly and we seem dividend. Long, long way off imho if at all.
Theo, you're better than that,
Theo - One would think your concerns should be were you have a financial investment , not venting were you do not , think moving forward i might take your own advise you posted on the HZM thread , to filter out the negative noises as you have done with the Publican , We are all big boys here that have done our DD and your venting towards Pensana has no influence contrary to your wishful thinking.
Sundrum you’re a halfwit. All I was doing was paraphrasing what the company said in its 31st March 2023 RNS. To quote:
“ The Group does not currently have sufficient funding to meet its outstanding creditors and is dependent on securing immediate term funding…..the Group is dependent on the continuing cooperation and forbearance of its suppliers while funding is secured..”
theorist - you say you can't recollect saying anything about administrators. what a load of bull****!!!
you wrote on the following dates and times;
31 mar 2023 17:08
i would expect the company to collapse into administration this weekend.
31 mar 2023 18:13
if the company is not solvent the directors have to call in administrators.
2 apr 2023 14:17
if, come tomorrow, the board has been unable to secure a lifeline they have to call in the administrators.
2 apr 2023 18:26
if they don’t call in the administrators this weekend or very early next that could only be because they have secured funding, even if that’s just 5 or 10m.
11 apr 2023 13:05
i cannot see the company going beyond friday without either announcing finance or administration. looking at the sp the needle seems to be swinging towards administration.
16 apr 2023 21:30
my money would be that tomorrow is the day, finance or administration.
Last time we were not informed it was hidden behind a smaller scale modular mining project with no saltend. It later materlised that the final review wasn't signed off by the lenders board.
Dont expect to be informed. The can will just be kicked.
However I do think it will be financed but not on the terms expected a year ago. Like I said all in lenders hands at min.
Ree price doesn't help
Mumbles. I do not recall ever saying anything about administrators. I do however recall saying the share would go to 15p. Lewis is spot on. There is a real issue about trust. In the last four years the company has never met a self imposed deadline. They have been in the final stages of finance for almost a year. Clearly there have been serious setbacks but the company has never ever disclosed a problem. Nobody has the feintest clue about what is going on. Time for Atherley to hold his hands up and acknowledge failure, this is becoming too painful to watch. It’s like watching the black knight in Monty Python!
If Pensana had failed the technical or financial due diligence ABSA would have advised them and they would then have to let shareholders know this price sensitive information.
PA stated at the AGM that we could expect an announcement on the Term Sheet shortly, so hopefully that will be the next release of information.
Lewis, I'm just tired
Ffs really mumbles and Tony. It's like I am back at school.
The worst persons I listened to with this stock was the board on pensana and there bull shiz timelines.
Trust is a massive problem here. The project value has been diluted and yet we still wait for finance.
Seriously though, who, and it goes for all ree miners, would invest today. It needs to be a cracking deal and you can bet its massively geared towards the lender if it comes at all.
Lewis, Theo did at one time say the administrators would be in by Wednesday, sometime at the beginning of April..... he was wrong then,