JOGMEC Commits Additional Funding to Complete Term 2 of JV Agreement for Lofdal Heavy Rare Earth Project
Press Release
JOGMEC Commits Additional Funding to Complete Term 2 of JV
Agreement for Lofdal Heavy Rare Earth Project
Halifax, Nova Scotia April 11, 2023 – Namibia Critical Metals Inc. (“Namibia Critical Metals”
or the “Company” or “N CMI”) (TSXV: NMI OTC: NMREF) is pleased to anno unce that its
JOGMEC partner has committed an additional C$300,000 to the on going Lofdal joint venture
exploration program. Under the conditions of approval by the Ministry of Economy, Trade and
Industry (METI) in Japan, JOGMEC has approved expenditures totalling C$10,375,000 through
to May 31, 2023, which satisfies the Term 2 Expenditure requirement of C$10 million to earn
40% interest in the Lofdal Project.
The Company is currently completing a corporate re-structuring to facilitate JOGMEC’s holding
of its initial 40% interest in the Lofdal Project as they move into Term 3 of the agreement in
June 2023.
The Company has also been advised by its JOGMEC partner that further to the public tender
process announced on Nov ember 28, 2022, there was no acceptable offer received from a
Japanese industrial company to acquire JOGMEC’s interest in the Lofdal Project. The Company
is scheduled to present the results of Preliminary Eco nomic Assessment (“PEA") and the
Preliminary Feasibility Study (“ PFS”) currently under way to several Japanese companies in
Tokyo and Osaka in late June in order to assist JOGMEC to identify an acceptable Japanese
party.
The Company continues to advance the Lofdal Heavy Rare Earth project in Namibia . The
Company filed a robust PEA for its expanded Lofdal 2B-4 Project on November 14, 2022, with
a pre -tax NPV of USD$632.7 million and an annual IRR of 34% pre -tax with a capital
expenditure of USD$207 million. The project is projected to generate a life of mine nominal
cash flow of USD$1.1 billion pre-tax over a 16-year mine life. The November 14, 2022 PEA is
based on mining and processing only 50% of the NI43-101 Mineral Resource Estimate.
The Company has commenced work towards delivering a Pre -Feasibility Study (PFS) for the
significantly larger project “Lofdal 2B-4” within the next 12 months with geotechnical drilling
completed and in-fill resource drilling on going. The Company has also commenced pilot plant
flotation work with SGS Canada Inc.
The Lofdal deposit has the potential for significant production of dysprosium and terbium, two
of the most valuable heavy rare earth elements and is targeting to become a long term,
sustainable supply of heavy rare earths.
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Darrin Campbell, President of Namibia Critical Metals stated:
“We are thrilled to have the continued support and backing of our JOGMEC partner and their
commitment to advancing Lofdal to production. Lofdal is clearly an important strategic
investment for JOGMEC and Japan as they move to reduce reliance on China for supply of
heavy rare earth metals. Together we have made very impressive progress in establishing
Lofdal as a globally significant heavy rare earth project. I am also excited to travel to Japan
in June to showcase our project to several top tier Japanese industrial companies.”
About Namibia Critical Metals Inc.
NMI is developing the Tier-1 Heavy Rare Earth Project, Lofdal , a globally significant deposit
of the heavy rare earth metals dysprosium and terbium. Demand for these critical metals
used in permanent magnets for electric vehicles, wind turbines and other electronics is driven
by innovations linked to energy and technology transformations. The geopolitical risks
associated with sourcing many of these metals has become a repeated concern for
manufacturers and end users. Namibia is a proven and stable mining jurisdiction.
The Lofdal Project is fully permitted with a 25-year Mining License and is under a Joint Venture
Agreement with Japan Organization for Metals and Energy Security (JOGMEC).
The Company filed a robust updated PEA for “Lofdal 2B -4” on November 14, 2022, with a
post-tax NPV of USD$ 391 million and an annual IRR of 28% with a capital expenditure of
USD$207 million. The project is projected to generate a life of mine nominal cash flow of
USD$698 million post-tax over a 16-year mine life.
About Japan Organization for Metals and Energy Security (JOGMEC) and the JV
JOGMEC is a Japanese government independent administrative agency which seeks to secure
stable resource supplies for Japan. JOGMEC has a strong reputation as a long term, strategic
partner in mineral projects globally. JOGMEC facilitates opportunities with Japanese private
companies to secure supplies of natural resources for the benefit of the country’s economic
development.
Rare earths are of critical importance to Japanese industrial interests and JOGMEC has
extensive experience with all aspects of the sector. JOGMEC provided Lynas with
USD$250,000,000 in loans and equity in 2011 to ensure supplies of the Light R are Earths
metals suite to the Japanese industry.
Namibia Critical Metals owns a 95% interest in the Lofdal project with the remaining 5% held
for the benefit of historically disadvantaged Namibians. The terms of the JOGMEC joint
venture agreement with the Company stipulate that JOGMEC provides C$3,000,000 in Term
1 and C$7,000,000 in Term 2 to earn a 40% interest in the Lofdal project. Term 3 calls for a
further C$10,000,000 of expenditures to earn an additional 10% interest. JOGMEC can also
purchase another 1% for C$5,000,000 and has first right of refusal to fully fund the project
through to commercial production and to purchase all production at market prices. The
collective interests of NMI and historically disadvantaged Namibians cannot be diluted below
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a 26% carried working interest upon payment of C$5,000,000 to JOGMEC for the dilution
protection. To date, JOGMEC has approved the budget for Term 1 and 2 totaling C$10,375,000
provided that part of this budget is subject to an approval by METI, Ministry of Economy ,
Trade and Industry of Japan.
Other exploration projects : The Company’s Exclusive Prospecting Licenses (“EPLs”)
prospective for gold are located in the Central Namibian Gold Belt which hosts a number of
significant orogenic gold deposits including the N avachab Gold Mine, the Otjikoto Gold Mine
and the Twin Hills deposit. At the Erongo Gold Project, stratigraphic equivalents to the meta-
sediments hosting the Osino gold discovery at Twin Hills have been identified and exploration
is progressing over this highly prospective area. The Grootfontein Base Metal and Gold
Project has potential for magmatic copper-nickel mineralization, Mississippi Valley-type zinc-
lead-vanadium mineralization and Otjikoto -style gold mineralization. Interpretation of
geophysical data and regional geochemical soil sampling have identified first gold targets.
Rainer Ellmies, PhD, MScGeol, EurGeol, AusIMM and Vice President of Namibia Critical Metals
Inc., is the Company’s Qualified Person and has reviewed and approved this press release.
The common shares of Namibia Critical Metals Inc. trade on the TSX Venture Exchange under
the symbol “NMI” and the OTCQB Market under the symbol “NMREF”.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
For more information please contact -
Namibia Critical Metals Inc.
Darrin Campbell, President
Tel: +01 (902) 835-8760
Email: [email protected] Web site: www.NamibiaCriticalMetals.com
This news release contains certain “forward -looking information” within the meaning of applicable securities laws. Forward looking information
is frequently characterized by wor ds such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”,
“potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only
predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is
subject to a variety of risks and uncertainties and other factors that could cause actual events or results to di ffer materially from those projected in
the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, reader s should
refer to the Company’s Management’s Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if
circumstances or management’s estimates or opinions should change, unless required by law. The reader is cautioned not to pla ce undue reliance
on forward-looking information.