Namibia Critical Metals has signed an agreement with a Japanese conglomerate to jointly explore, develop, exploit, refine and distribute mineral products from the Lofdal Heavy Rare Earth Project.
The agreement provides Japan Oil, Gas and Metals National Corporation (JOGMEC) with the right to earn a 50% interest in the project by providing funding of US$20 000 000 in exploration and development expenditures.
Once JOGMEC has completed and exercised its 50% earn-in and a feasibility study has been completed on the project, it has the right to purchase an additional 1% interest in the project from Namibia Critical Metals for US$5 000 000 and thereafter to exclusively provide funding to develop the project subject Namibia Critical Metals’ interest in the project not being diluted below 26%.
Chief Executive Officer of Namibia Critical Metals, Pine van Wyk, said the partnership with JOGMEC brings strong technical and financial capacities to move the Lofdal project forward.
“It provides alignment with and access to significant industrial groups in Japan looking to secure long-term supplies of dysprosium, terbium and other heavy rare earths. It should also be noted that this agreement is structured such that no equity will be issued and is totally non-dilutive to NMI shareholders,” he said.
According to Van Wyk, JOGMEC is mandated to seek a stable supply of natural resources for Japan and NMI is delighted that the Japanese entity has recognized the potential of Lofdal.