Global rare earths mining investment platform Cascade Natural Resources has increased its previously announced investment in London-listed Pensana in support of the development of the company's US mine-to-magnet strategy, to $165-million.

Cascade had initially agreed to invest $100-million in Pensana.

Pensana explains that Cascade intends to advance the strategic investment to Pensana and its group companies by way of an investment of $15-million into Pensana by way of a subscription for 13.55-million new ordinary shares at 80p a share.

This will coincide with the investment of a further $150-million into the company's wholly owned subsidiary Sable Min Unipessoa, which is a majority shareholder in Ozango Minerais – the developer of the Longonjo rare earths mine, in Angola.

As a result of the strategic investment, Cascade will own 3.8% of Pensana and 38.2% of Sable.

Pensana explains that the strategic investment remains subject to long-form documentation and completion which are expected in the coming weeks.

Alongside the proposed $160-million Absa debt funding package, guaranteed by the US Export-Import Bank, the strategic investment would provide for the construction of the Longonjo mine, including execution of the recently announced drill programme and heavy rare earth element recovery facility; early downstream development initiatives; the costs associated with Pensana’s proposed Nasdaq listing; and corporate costs ahead of Longonjo's first production, scheduled for 2027.

ABG Sundal Collier, an independent Nordic investment bank, has acted as Pensana's financial adviser for the strategic investment by Cascade.

Meanwhile, based on the structure of the revised strategic investment, Pensana says the directors currently have sufficient authority to issue the 13.55-million ordinary shares in Pensana to Cascade, free of preemption rights.

Accordingly, the company notes that it is proposed that the forthcoming general meeting scheduled for March 9, will be cancelled and adjourned until further notice.

Instead, Pensana plans to provide shareholders with an update on the strategic investment and the company’s US mine-to-magnet strategy more generally at the same time and venue proposed for the general meeting on March 9.