(Alliance News) - Pensana PLC on Monday said re-engineering work at its Longonjo rare earth mine is progressing as planned.
The rare earths explorer focused on electric vehicle and offshore wind turbines said the redesign will see a lower pre-production spend without compromising the project's potential.
The company noted its permits are all valid, including its exploitation licence, environmental and social impact assessment and construction permit.
The firm added that it has re-engaged the vendors for major and long-lead equipment items to ensure they remain committed to the project, while it also noted that its modular sulphuric acid plant will enable off-site prefabrication and testing.
Pensansa said this allows faster construction, as well as "high levels" of job creation and training.
Pensana said the project will not displace any housing or existing buildings but will displace subsistence agricultural activities, which will be compensated for.
Chief Executive Tim George said: "We are pleased to confirm that the team is on schedule with the stage 1 re-engineering to the USD200 million capital expenditure design and are also well advanced on the financial due diligence for the main financing later this year.
"We acknowledge and very much appreciate the ongoing support from the Government of Angola, the ongoing financial support from FSDEA and the engagement from Absa [Bank] and others for the financing and development of this important strategic minerals project over the next two years."
"Longonjo hosts a world class, high-grade, near surface magnet metal rare-earth orebody, with direct access to affordable hydroelectric power and the Lobito Corridor rail and port infrastructure which are now both operated under recently announced long-term concession agreements."
FSDEA is the sovereign wealth fund of Angola and Absa Bank is part of Johannesburg-listed Absa Group Ltd.
Pensana shares fell 3.3% to 21.86 pence each on Monday morning in London.
By Harvey Dorset, Alliance News reporter
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Pensana Plc (PRE)