Pensana Plc (LON:PRE) has advised that it has signed a non-binding Memorandum of Understanding for an offtake with a major Japanese partner, Hanwa Co. Ltd.
Key MOU terms include:
- Offtake proposal for up to 20,000tpa of ultra clean Mixed Rare Earth Carbonate from Longonjo mine over 5 years at prices to be discussed.
- Hanwa intends to co-operate with Pensana in the marketing and distribution in the Global market but also work towards developing a strategic and sustainable supply chain for magnet metal material.
- Hanwa is considering a deeper co-operation including possibility of an investment to continue to develop the Pensana upstream and downstream projects with the aim of delivering a low embedded carbon magnet metal supply chain supporting Hanwa’s customers and future partners.
The MOU also allows for Hanwa to consider providing financial support and to jointly study support opportunities from Governmental and financial institutions for the various Pensana projects. These include Coola and Sulima west expansion, the separation facilities and metallization project.