(Alliance News) - Pensana PLC on Monday said the Angolan sovereign wealth fund was "very satisfied" with the construction progress of its Longonjo project following a site visit last week.
Pensana is a London-based rare earths explorer.
Last Wednesday, the FSDEA, which stands for Fundo Soberano de Angola, visited the Longonjo rare earth mine site in Angola to review the early-stage construction activities it is funding through a USD15 million bridging loan.
Pensana noted that the FSDEA was "very satisfied with the activities completed to date, namely the deployment of capital for the civil works for the camp, the rehabilitation of the access road to the Longonjo railway station and the agricultural demonstration plots under the Livelihood Restoration Programme."
Chair of the FSDEA board, Armando Manuel commented: "We are delighted to see the excellent progress being achieved on site at Longonjo, which is an important project for us. FSDEA has financed the acceleration of construction activities to ensure that the project maintains momentum whilst we work with the lender consortium to conclude the main finance."
Meanwhile, Pensana Chief Executive Officer Tim George said: "We are grateful for the ongoing financial and other support from FSDEA for what is going to be a very important project in terms of high value long-term jobs. We are making good progress on site. Over the past few months, the site team has transitioned to a high-performance delivery role and is busy preparing for the main construction activities. We are in good shape to commence construction activities as soon as the financing is completed."
Earlier this month, Pensana had updated its shareholders on construction activities at Longonjo, announcing that the 4.5 kilometre road that links Longonjo to the Benguela railway line has been upgraded with an improved roadbed structure, a redefined road profile, and new drainage systems.
Additionally, the company said agricultural demonstration plots have been installed by South African agriculture consultants, Vuna Agri, as part of the Livelihood Restoration Programme which aims to "provide replacement land for any displaced farmers and additionally to provide a training base for those persons affected by the project to develop their agricultural skill sets."
Shares in Pensana were down 0.9% at 20.12 pence each in London on Monday morning.
By Sabrina Penty, Alliance News reporter
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Pensana Plc (PRE)