Namibia Critical Metals has signed a non-binding, non-exclusive Memorandum of Understanding with Copenhagen Atomics A/S to sell thorium produced from the Lofdal Heavy Rare Earth Project.
Namibia Critical Metals owns a 95% interest in the Lofdal project, with the remaining 5% held for the benefit of historically disadvantaged Namibians.
Atomics CA is a private technology company that started in 2014 and has developed a thorium molten salt reactor scheduled for mass manufacturing.
CA expects its first operational reactor in 2027 and commercial deployment in 2029.
The company has developed several new technologies to support molten salt reactors.
The memorandum provides the framework for the parties to negotiate a binding commercial offtake agreement to supply thorium from the Lofdal Project.
The annual production of thorium oxide from the Lofdal project is expected to be about 100 tonnes of total output.
The agreement will provide Namibia Critical Metals with a potential revenue stream from a waste product.
The parties intend to move forward and outline a conditional purchase order with a given quantity, delivery date and quality, which CA will submit before January 2025.
The memorandum will be effective 12 months from the date of signing unless terminated by written notice by either party.
Namibia Critical Metals president Darrin Campbell expressed delight about the opportunity to provide a new potential revenue stream from a radioactive product planned to be put back into tailings.
The Lofdal Project is fully permitted with a 25-year Mining License and is under a joint venture agreement with the Japan Organization for Metals and Energy Security (JOGMEC).
