# Pensana updates on site development at Saltend Chemicals Park

- Link: https://www.directorstalkinterviews.com/pensana-updates-on-site-development-at-saltend-chemicals-park/4121019999
- Published: 2021-08-31T07:22:18+01:00
- Author: Giles

**Pensana Plc** ([LON:PRE](https://www.directorstalkinterviews.com/company/pensana-rare-earths-plc/pre.l))
has provided an investor update following a recent Board Meeting held at the Saltend
Chemicals Park in Humber Freeport, Northern England.

Pensana’s US$125 million plant will be the first major rare earth separation facility
to be built in over a decade and the first to be located in a Freeport. It will 
become an important hub in establishing an independent magnet metal supply chain
for the UK and beyond, creating over 100 high value direct jobs and over 500 jobs
during construction.

**Site developments under way at Saltend and Longonjo**

At the Saltend project in Humber, UK:

 * Front End Engineering Design (FEED) is advancing per schedule and expected to
   be complete in October. Thereafter EPCM contracts are expected to be awarded.
 * Pensana has entered into a 25-year lease agreement with pxGroup and Associated
   British Ports (ABP) for the initial nine-hectare Saltend site with scope for 
   expansion.
 * Geotechnical drilling and trenching works have commenced. These will confirm 
   input data for the completion of foundation design for the processing plant buildings
   and infrastructure.
 * Wood, the international engineering group, is working with pxGroup to optimise
   jetty to site reagent and material handling arrangements along with the provision
   of ‘plug and play’ power, water, steam and fuel supplies.
 * Pensana is also in discussions with Freeport stakeholders from pxGroup, ABP and
   KPMG to finalise government submissions to clarify of the benefits and incentives
   applicable to the Freeport enterprise zone tax and customs zone for the Saltend
   Chemicals Park.

At the Longonjo project in Angola:

 * Front End Engineering Design (FEED) is again advancing per schedule and expected
   to be complete in October with EPCM contracts awarded thereafter.
 * The Lidar survey for the complete site (inclusive of surrounding bulk service
   infrastructure and the transmission line providing connection to hydro-electric
   power) has now been completed along with hydrological studies of water supply
   and 100 year floodline assessments.  
 * Detailed geotechnical investigation, under the supervision of global specialists
   SRK, has been mobilized. It will confirm final plant and infrastructure foundation
   design, tailings storage facility and pit stability criteria which have been 
   based on previous broader area campaigns.

**ATF Funding**

The Company’s expression of interest in the UK Government’s up to £1bn Automotive
Transformation Fund (“ATF”) has been received positively by the programme board.
The application for grant or other forms of financial support is currently under
government review.

The Company does not have any indication on the timing of any potential award, however
it will advise shareholders as soon as advice is received.

Bond Financing for the Saltend rare earth separating facility in Humber, UK

Pensana has engaged ABG Sundal Collier (ABGSC), a leading Nordic investment bank
headquartered in Oslo, Norway, to progress the debt financing.

ABGSC is a premier investment bank in the Nordic market with an extensive track 
record in the Nordic high yield market and broad natural resources sector expertise
and debt structuring. The transaction will be supported by ABGSC’s top ranked credit
research team, delivering unique investor education and credit story marketing.

With broad natural resources sector expertise, capital markets and debt structuring
experience alongside extensive capabilities in negotiating intercreditor terms with
government agencies, ABGSC is well placed to assist in the execution of the proposed
bond issuance. 

The envisaged senior debt facilities under discussion comprise a senior secured 
first lien facility amount of up to US$250 million over a five-year term.

ABGSC will be initiating their detailed due diligence review shortly and will look
to be in a position to target a bond issuance during Q4 2021 once FEED and site 
preparation is complete.

**Offtake and Marketing Agreements**

Discussions have commenced with a number of prospective offtake partners with a 
view to securing offtake and/or marketing agreements to support the main financing.
To date non-disclosure agreements have been executed with three interested parties
and discussions have been initiated with several more.

**Investor Webinar**

Pensana will hold an investor webinar at 08:00 UK on Wednesday 8 September. Investors
may register and submit questions ahead of the webinar using this link:

[https://www.investormeetcompany.com/pensana-plc/register-investor](https://www.investormeetcompany.com/pensana-plc/register-investor)

> **Pensana Plc chairman Paul Atherley commented**, “We continue to work closely
> with the UK Government’s Automotive Transformation Fund on support for the world-
> class Saltend rare earth processing hub which will create over 500 jobs during
> construction and over 100 high value permanent jobs once in operation.
> Saltend will be the first major rare earth separation facility to be developed
> in over a decade and will be the first to be located in a Freeport. The facility
> will process feedstock from the Company’s Longonjo project and from other sources
> around the world, producing the mag.

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