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Namibia Critical Metals and JOGMEC Conclude Agreement to Develop the Lofdal Heavy Rare Earth Project
Japan Oil, Gas and Metals National Corporation ("JOGMEC") acquires right to earn up...
About this update from Namibia Critical Metals Inc.
[{"type":"text","content":"Namibia Critical Metals and JOGMEC Conclude Agreement to Develop the Lofdal Heavy Rare Earth ProjectJapan Oil, Gas and Metals National Corporation (\"JOGMEC\") acquires right to earn up to 50% interest in the Lofdal Heavy Rare Earth Project for project level investment of CDN$20,000,000After earn-in and completion of feasibility study, JOGMEC provided right to acquire additional 1% interest in the Project for CDN$5,000,000 and to elect to exclusively fund development of the Project subject to Namibia Critical Metal's right to maintain a 26% carried interest in the Project Namibia Critical Metals to act as operator during earn-in period through to completion of Feasibility StudyHALIFAX, NS / ACCESSWIRE / January 27, 2020 / Namibia Critical Metals Inc. (\"Namibia Critical Metals\" or the \"Company\" or \"NMI\") (TSXV:NMI) today announced that it has signed an agreement with Japan Oil, Gas and Metals National Corporation (\"JOGMEC\") to jointly explore, develop, exploit, refine and/or distribute mineral products from the Company's 100% owned Lofdal Heavy Rare Earth Project (\"Project\") in northwestern Namibia. The agreement provides JOGMEC with the right to earn a 50% interest in the Project by funding $20,000,000 in exploration and development expenditures. Once JOGMEC has completed and exercised its 50% earn-in and a feasibility study has been completed on the Project, JOGMEC has the right to purchase an additional 1% interest in the Project from the Company for $5,000,000 and thereafter to exclusively provide funding to develop the Project subject to the Company's interest in the Project not being diluted below 26%. All amounts are in Canadian dollars.Pine van Wyk, Chief Executive Officer of Namibia Critical Metals stated \"This partnership with JOGMEC brings strong technical and financial capacities to move the Lofdal project forward. It provides alignment with, and access to significant industrial groups in Japan looking to secure long-term supplies of dysprosium, terbium and other heavy rare earths. It should also be noted that this agreement is structured such that no equity will be issued and is totally non-dilutive to NMI shareholders. JOGMEC is mandated to seek a stable supply of natural resources for Japan and we are delighted that they have recognized the potential of Lofdal. Agreement DetailsThe agreement with JOGMEC ...