The company developing the Lofdal Rare Earth Project, Namibia Critical Metals Inc., intends to complete a non-brokered private placement of up to N$6,7m (C$500,000).
The placement consists of units offered for C$0.06 per unit, representing a 7.7% discount to the closing price of the common shares on 17 November 2023.
The proceeds of the Private Placement will be used primarily to fund marketing and general corporate purposes.
Namibia Critical Metals owns a 95% interest in the Lofdal project, with the remaining 5% held for the benefit of historically disadvantaged Namibians.
The Lofdal Project is fully permitted with a 25-year mining license and is under a Joint Venture Agreement with the Japan Organisation for Metals and Energy Security (JOGMEC).
Namibia Critical Metals also owns the Grootfontein Nickel-Copper-Lead-Zinc-Vanadium-Gold Project, the Otjiwarongo Rare Erath and Gold Project, as well as the Erongo Gold Project.
The Australian-listed uranium development company, Bannerman Energy Ltd., which has a 41.8% stake in Namibia Critical Metals, says it will take up a minimum of N$2,8m (US$209,000) of the US$ 500,000 private placement.
Bannerman Energy, which is developing the Etango Project, acquired the stake in May 2022 after paying A$7.24m cash.
Namibia Critical Metals president Darrin Campbell said they are pleased with the progress of the workstreams to deliver a fully funded pre-feasibility study next year under our joint venture with JOGMEC.
“This announced financing is to provide general working capital and marketing, and we appreciate the continued strong support of our largest shareholder, Bannerman Energy,” Campbell said.
