Namibia Critical Metals Signs LOI to Commence Pilot Plant Flotation and Hydrometallurgical Testing with SGS Canada
Press Release
Namibia Critical Metals Signs LOI to Commence Pilot Plant
Flotation and Hydrometallurgical Testing with SGS Canada
Halifax, Nova Scotia March 02, 2023 – Namibia Critical Metals Inc. (“Namibia Critical
Metals” or the “Company” or “NMI”) (TSXV: NMI OTC: NMREF) is pleased to announce that it
has signed a Letter of Intent with SGS Canada to begin pilot plant testing on a 5-tonne sample
from the Lofdal HREE Deposit in Q3 2023.
The objective of the test program is to scale up laboratory flotation tests , including locked-
cycle testing, for a higher level of confidence in metallurgy, confirm engineering design criteria
for PFS capital and operating cost estimation , and provide a larger amount of material for
hydrometallurgical testing.
Darrin Campbell, President of Namibia Critical Metals stated:
“I’m excited about the progress our team made over the first weeks of 2023, both at site with
the various drilling prog rams and at the test centers with further improvements on the
economics and efficiencies of the processing flow sheet. This year is expected to be one of
the most impactful periods in our corporate development as we continue to accelerate pilot
plant testing through feasibility to production.”
ESG activities in January 2023
The Company expanded it’s “Early Learner’s Assistance Program” with the start of the 2023
school year. 200 school uniforms and backpacks were handed over by the Company to five
primary schools situated around the Lofdal project , 4 schools in Khorixas and 1 in
Fransfontein. The handover ceremonies were accompanied by the coordinator of the Early
Learner’s Assistance Program from the Ministry of Education , representatives from the
Traditional Authority, Conservancies, and the Company.
Darrin Campbell stated: “I am extremely proud of the work our team has done in the
communities surrounding our project in Namibia. We have been very involved in supporting
our communities for over a decade with on -going financial support for a local orphanage in
Khorixas, providing drilled water wells for local farmers near Lofdal and now the start of our
Early Learner’s Assistance Program. We have modelled this fantastic program after the
program that was created by our corporate shareholder, Bannerman Energy a number of
years ago for which they were awarded this years Mining Indaba ESG Forum Award for
Community Engagement.”
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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$699 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
US$250,000,000 in loans and equity in 2011 to ensure supplies of the Light Ra re 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
Figure 1: Impressions from the handover of school uniforms at Primary Schools in Khorixas and Fransfontein
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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
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$10,075,000
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 Navachab 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”.
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.