Bannerman Energy has shown intent to acquire additional shares in Namibia Critical Metals (NCM). The company is set to participate in a non-brokered private placement, pledging a minimum of N$3.8 million.
This decision aligns with Bannerman’s commitment to maintaining a pro rata ownership of Namibia Critical Metals, presently standing at 41.8%.
Darrin Campbell, President of Namibia Critical Metals, highlighted the company’s plan to leverage a shareholder approval exemption. This exemption is pivotal, particularly considering that Bannerman Energy’s increased involvement may trigger Related Party Transactions, provided such components remain below 25% of the company’s market capitalisation.
The acquisition coincides with NCM’s initiative to secure up to N$9.3 million through the private placement, offering units at a price of N$1.12 per unit. Each unit comprises one common share and one warrant, granting the holder the option to purchase an additional common share at N$1.86 within a 24-month period.
Darrin Campbell expressed gratitude for the ongoing support from Bannerman Energy, stating, “This announced financing is to provide general working capital and marketing, and we appreciate the continued strong support of our largest shareholder, Bannerman Energy.”
The success of the private placement is contingent upon approval from the TSX Venture Exchange. Additionally, common shares and warrants issued as part of the private placement will be subject to a standard four-month hold period.
Namibia Critical Metals Inc. (NCMI) remains dedicated to advancing the Tier-1 Heavy Rare Earth Project, Lofdal.
Lofdal houses a globally significant reserve of dysprosium and terbium, critical heavy rare earth metals indispensable in the production of permanent magnets for electric vehicles, wind turbines, and various electronic devices.
The surge in demand for these essential metals, driven by advancements in energy and technology, accentuates concerns related to geopolitical risks in their procurement. Namibia, recognized as a reliable and stable mining jurisdiction, strategically mitigates these concerns for manufacturers and end-users alike.
