Namibia Critical Metals Inc. (NCMI) says its joint venture partner, Japan Oil, Gas and Metals National Corporation (JOGMEC), has approved an additional N$23.2 million in funding for its Tier-1 Lofdal heavy rare earth project.
Darrin Campbell, President of Namibia Critical Metals, said the funds bring the total budget for the period until 31 March 2024, to N$241 million (US$13,050,000) for the project.
He added that by injecting additional funds, the joint venture aims to fast-track the progression of crucial projects, ensuring timely execution and achieving key milestones ahead of schedule.
“This accelerated funding will allow us to complete pilot plant hydrometallurgical test work as well as other important technical studies to finalise our pre-feasibility study for the large-scale Lofdal 2B-4 project,” Campbell said.
With the accelerated commencement of the pilot plant hydrometallurgical test work, NCMI intends to leverage advanced technologies and innovative methodologies to optimise processes and enhance the efficiency of mineral extraction and refining.
“Parallel technical studies will be conducted to support the ongoing pre-feasibility study, fostering a comprehensive understanding of the mining potential of Lofdal and paving the way for future success,” he said.
The Lofdal Project, a globally significant deposit of heavy rare earth metals dysprosium and terbium, is fully permitted with a 25-year Mining License and operates under a Joint Venture Agreement with JOGMEC.
The geopolitical stability of Namibia as a mining jurisdiction is a key advantage for the project.
Campbell noted that the recent filing of an updated Preliminary Economic Assessment (PEA) for Lofdal 2B-4 showcased a post-tax NPV of N$7.3 billion (US$391 million) and an annual IRR of 28%, with a capital expenditure of N$3.8 billion (US$207 million).
The project is expected to generate a life of mine nominal cash flow of N$12.9 billion (US$698 million) post-tax over a 16-year mine life.
“JOGMEC’s role as a strategic partner in mineral projects globally is highlighted, as it has already completed Term 2 of the joint venture agreement by reaching the C$10 million (N$138 million) expenditure requirement,” he said.
He noted that an additional N$39 million (C$3,050,000) has been approved for Term 3 through 31 March 2024, bringing the total approved project funding to C$13,050,000 of the N$260 million (C$20,000,000) earn-in requirement to reach a 50% interest.
“The collective interests of NCMI and historically disadvantaged Namibians cannot be diluted below a 26% carried working interest upon payment of N$65 million (C$5,000,000) to JOGMEC for the dilution protection,” Campbell said.
