Japan Oil, Gas, and Metals National Corporation (JOGMEC) is now a 40% Lofdal Heavy Rare Earth Element Project owner.
Lofdal is the most advanced project in the company portfolio, with a 43-101 mineral resource estimate established in 2012, updated in 2021, and a preliminary economic assessment completed in 2014.
The project under licence 200 is valid for 25 years until May 10, 2046.
Namibia Critical Metals’ subsidiary, Namibia Rare Earths, owns a 95% interest in the project, with the balance held by Philco One Hundred Ninety-Six (Pty) Ltd.
JOGMEC is a Japanese government’s independent administrative agency seeking to secure stable resources for Japan.
The company facilitates opportunities with Japanese private companies to ensure natural resource supplies for the country’s economic development.
JOGMEC became a joint venture partner with Namibia Critical Metals in January 2020 to explore, develop, exploit, refine, and/or distribute mineral products from Lofdal.
The joint venture agreement stipulates that JOGMEC provides C$3 million in Term 1 and C$7 million in Term 2 to earn a 40% interest in the Lofdal project.
The Japanese company has now paid US$16.245,000 after approving an additional C$1,154,000 budget for its fiscal year, which ended March 31, 2025.
JOGMEC also announced an increase of US$550,000 on January 22, 2025. This brings JOGMEC’s total expenditure commitments to $16,245,000
Term 3 calls for a further C$10 million of expenditures to earn an additional 10% interest.
JOGMEC can also purchase another 1% for C$5 million and has the first right of refusal to fund the project fully through commercial production and to buy all output at market prices.
Namibia Critical Metals and Philco One Hundred Ninety-Six’s collective interests will not be diluted below a 26% carried working interest upon payment of C$5 million.
After the earn-in period, Namibia Critical Metals may elect to participate up to a maximum of 44% by funding pro-rata.
Namibia Critical Metals president Darrin Campbell said JOGMEC’s determination and willingness to increase funding ahead of schedule is a testament to the strategic importance of the Lofdal Heavy Rare Earth project to the Japanese industry in the future.
“We will also take additional time to complete the progressing pre-feasibility study to incorporate some of the results of this accelerated program,” Campbell said.
