Pensana (LSE:PRE) said construction at its Longonjo rare earth mine in Angola is now more than 30% complete, but the overall schedule has slipped from a previously announced 2028 completion to late 2028.
The delay follows a slowdown in detailed design work, high-cost site activities and long-term procurement while the company finalises financing.
Pensana had previously flagged a $165 million investment from Cascade, backed by the State of Qatar, of which $15 million has been received to date.
The company has since opened financing discussions with major shareholders and held detailed talks with potential offtake partners, whose agreements are intended to support planned debt facilities with ABSA and EXIM.
Pensana described Longonjo as one of the world's largest undeveloped rare earth mines, with current production plans based on ore from the top 30 metres of the orebody, while drilling has intersected mineralisation to depths beyond 100 metres, leaving the deposit open at depth.
Against that backdrop, Pensana has accepted a farm-in offer from Tyranna Resources (ASX: TYX) over its Coola exploration project, located 30km from Longonjo.
Tyranna will spend $2.6 million over three years, diluting Pensana's interest in Coola to 20%, with any future ore from a Coola mine having the option to be processed at Longonjo.
Pensana said it will continue updating stakeholders on financing progress and mine development as details emerge.
News Intelligence what this means for the company
Pensana has pushed Longonjo's completion from 2028 to late 2028—a slip of several months—citing slowdowns in design, site work, and procurement while it finalises financing. The delay matters because the company has received only $15 million of a promised $165 million from Cascade (State of Qatar-backed), and must now secure debt facilities from ABSA and EXIM backed by offtake agreements. To preserve optionality, Pensana has farmed out its nearby Coola project to Tyranna Resources, diluting its stake to 20% in exchange for $2.6 million over three years.
- Tyranna Resources gains exposure to rare earth exploration 30km from Longonjo, with processing optionality if Coola ore is developed.
- ABSA and EXIM debt facilities remain contingent on offtake partner agreements, which have not yet been announced—a key financing risk.
The timeline slip and financing dependency narrow the path to production. Pensana had targeted first mixed rare earth carbonate commissioning in 2027, but late-2028 completion at Longonjo now pushes integrated mine-to-magnet output further out, extending the cash-burn phase and increasing refinancing risk if offtake negotiations stall.
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