Rare earth specialist Pensana has raised £10 million in a major City deal.
The equity buy-in from one of the 海角视频’s largest and long-standing fund managers will help it realise plans for the Humber.
M&G will take a 5 per cent stake in the business - behind a huge complex processing plant at Saltend.
Read more: Freeport launch during COP26 spawns 'Humber’s moment for economic rebirth as decarbonising pioneers'
Magnet metals sourced from mines it is constructing in Angola will be used in the renewable energy and electric vehicle markets, with a £100 million investment to kickstart the domestic market.
M&G’s head of 海角视频 equities, Michael Stiasny, said: “With this strategic investment, we look forward to supporting Pensana in the future as they continue to develop an independent and sustainable rare earth supply chain based in the 海角视频, which is essential as we move towards becoming a net zero economy.”
The deal involves 12.3 million new shares being sold at 81p, having been placed by Pensana, enlarging the issued share capital. Admission to the London Stock Exchange’s main market is anticipated on Thursday, January 6. Early trading saw a positive response to the announcement, with the M&G share price up 2.5p to 194.5p and Pensana's up 10p to 85p.
Pensana chairman Paul Atherley said: “We are delighted with the investment by M&G which comes at an exciting time for the company as we look to establish a world class processing hub at Saltend chemical park in the 海角视频’s Humber Freeport, to meet the burgeoning demand from the electric vehicle and offshore wind industries.”
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Revealed just over a year ago, a 25-year lease has been signed for the site, just outside Hull and neighbouring the city port, with PX Group and ABP.
The high-tech oxide separation plant will create 125 jobs, with bond issues and government funds also being sought to back the build.
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It is aiming to produce 4,500 tonnes of neodymium and praseodymium oxide by 2024, 5 per cent of the anticipated global demand. It is used to power the strongest types of rare earth magnets, enabling the conversion of electrical energy into motion.
Engineering giant Wood has been tasked with front end engineering and design, to be completed soon, with planning permission in place.
Geotechnical drilling and trenching ahead of main construction has also been undertaken, with contract awards for equipment and build-out anticipated in 2022, with commissioning in late 2023.
The Humber was selected over other 海角视频 and European locations by Pensana, with the freeport incentive and plug-and-play nature of Saltend ranking highly.
Future plans for offshore wind turbine recycling and hydrogen use further the location's attraction.