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JOGMEC Commits Additional Funding to Complete Term 2 of JV Agreement for Lofdal Heavy Rare Earth Project
HALIFAX, NS / ACCESSWIRE / April 11, 2023 / Namibia Critical Metals Inc. ("Namibia Critical Meta...
About this update from Namibia Critical Metals Inc.
[{"type":"text","content":"JOGMEC Commits Additional Funding to Complete Term 2 of JV Agreement for Lofdal Heavy Rare Earth ProjectHALIFAX, NS / ACCESSWIRE / April 11, 2023 / Namibia Critical Metals Inc. (\"Namibia Critical Metals\" or the \"Company\" or \"NCMI\") (TSXV:NM)(OTCQB:NMREF) is pleased to announce that its JOGMEC partner has committed an additional C$300,000 to the on going Lofdal joint venture exploration program. Under the conditions of approval by the Ministry of Economy, Trade and Industry (METI) in Japan, JOGMEC has approved expenditures totalling C$10,375,000 through to May 31, 2023, which satisfies the Term 2 Expenditure requirement of C$10 million to earn 40% interest in the Lofdal Project.The Company is currently completing a corporate re-structuring to facilitate JOGMEC's holding of its initial 40% interest in the Lofdal Project as they move into Term 3 of the agreement in June 2023.The Company has also been advised by its JOGMEC partner that further to the public tender process announced on November 28, 2022, there was no acceptable offer received from a Japanese industrial company to acquire JOGMEC's interest in the Lofdal Project. The Company is scheduled to present the results of Preliminary Economic Assessment (\"PEA\") and the Preliminary Feasibility Study (\"PFS\") currently under way to several Japanese companies in Tokyo and Osaka in late June in order to assist JOGMEC to identify an acceptable Japanese party.The Company continues to advance the Lofdal Heavy Rare Earth project in Namibia. The Company filed a robust PEA for its expanded Lofdal 2B-4 Project on November 14, 2022, with a pre-tax NPV of USD$632.7 million and an annual IRR of 34% pre-tax with a capital expenditure of USD$207 million. The project is projected to generate a life of mine nominal cash flow of USD$1.1 billion pre-tax over a 16-year mine life. The November 14, 2022 PEA is based on mining and processing only 50% of the NI43-101 Mineral Resource Estimate.The Company has commenced work towards delivering a Pre-Feasibility Study (PFS) for the significantly larger project \"Lofdal 2B-4\" within the next 12 months with geotechnical drilling completed and in-fill resource drilling on going. The Company has also commenced pilot plant flotation work with SGS Canada Inc.The Lofdal deposit has the potential for significant production of dysprosium and terbium, two...