LONDON, July 20 (Reuters) - Pensana Rare Earths is
in early stage talks with lenders including Barclays,
South Africa's Rand Merchant Bank (RMB) and funds including
Fidelity to secure more funding for its Angola project, its
chairman said on Monday.
Chairman Paul Atherley said the miner planned to raise
between $30-$50 million of working capital from the banks while
funds would be tapped for about $25 million in equity for the
construction of the mine.
State-owned China Great Wall Industry Corporation (CGWIC)
will provide the rest of the up to $170 million required to
build the rare earths project in Angola, Pensana said.
RMB, Barclays and Fidelity were not immediately available
for comment.
Rare earths, a group of 17 minerals used in everything from
consumer electronics to military equipment and offshore wind
projects, are predominantly mined and processed in China.
Western powers have put the metals on lists of strategic
minerals and are trying to develop their own supplies, but
analysts say China's dominance will be very hard to shake.
Talks will pick up pace after Pensana completes its Bankable
Feasibility Study expected in October, Chief Financial Officer
Rob Kaplan said.
Construction of the project will begin in January, and the
working capital will need to be secured towards the end of 2021.
Angola's government is in the midst of a number of sweeping
reforms aimed at diversifying the economy away from oil, gas and
diamonds.
The country's sovereign wealth fund, which is Pensana's
largest shareholder, was at the centre of a scandal involving
the former president's son, Jose Filomeno de Sousa dos Santos,
who allegedly transferred $500 million from the bank to a Credit
Suisse account in London.
"We are totally transparent and we believe that this new
government is a very open book. We will avoid what appears to
have occurred before by being open and clear with everybody
about what we are doing," Atherley said.
(Reporting by Zandi Shabalala; editing by Barbara Lewis)