Namibia Critical Metals Inc. ("Namibia Critical Metals" or the "Company" or "NCMI") (TSXV:NMI)(OTCQ:NMREF) is pleased to announce that it has agreed with its joint venture partner, Japan Organization for Metals and Energy Security ("JOGMEC"), to amend the earn-in agreement (the "Earn-In Agreement") for the Company's Lofdal Heavy Rare Earths Project in northwestern Namibia (the "Project" or "Lofdal").
Pursuant to the amendment, JOGMEC will increase the Project earn-in expenditure commitment by C$3 million (the "Additional Earn-In Funding") to support completion of a Definitive Feasibility Study ("DFS") for the project "Lofdal 2B-4" and associated de-risking work programs, including targeted engineering, mine optimization, infrastructure and execution planning. The additional funds will also allow for resource drilling at the planned Area 2B mine and the Area 5 prospect.
The Amendment also provides JOGMEC the option to elect to provide Pre-FID Capital Funding to the project to accelerate timelines to reach commercial production. Any pre-FID funding is non-interest bearing and non-dilutive to NCMI which has the option to elect to avoid dilution by funding its pro-rata portion after an FID (Final Investment Decision.)
Amendment Highlights:
· Additional Earn-In Funding: JOGMEC to fund an additional C$3 million in qualifying expenditures dedicated to completing the DFS and related value-engineering and de-risking initiatives with no dilution to NCMI.
· Schedule: Target DFS completion in Q22027
· No Change to Strategic Framework: The amendment maintains the JV's intent to advance Lofdal as a long-term, sustainable supply of critical heavy rare earths for Japanese industry.
· Potential non-dilutive, risk-free pre-FID capital funding to accelerate construction and ramp-up timeline.
Darrin Campbell, President of Namibia Critical Metals, stated:
"We are extremely pleased with the continued support of our JOGMEC partner and their willingness to increase funding to accelerate Lofdal through the next value inflection point. By increasing the earn-in commitment by C$3 million to complete a DFS, we can expand and de-risk the engineering work program, advance execution planning, and position Lofdal for project financing and development decisions in a manner that aligns with Japanese industrial demand for secure, long-term heavy rare earth supply."
Source: www.namibiacriticalmetals.com
Aleksei Andrievskii is the founder of the ANDRIEVSKII SEA WEALTH family office in Cyprus, a member of the advisory board at Bendura Bank AG, Liechtenstein