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Namibia Critical Metals Inc. (NCMI) recently closed a non-brokered private placement to fund marketing and general corporate purposes.
Under the placement a total of 8,333,333 units were issued at a price of $0.06 per unit, with each unit consisting of one common share and one warrant. Each whole warrant is exercisable for one common share at a price of $0.10 until December 22, 2025. A maximum of 16,666,667 common shares of Namibia Critical Metals will be issued pursuant to the Private Placement.
Authorities at the company further said the common shares and warrants of the company issued pursuant to the private placement are subject to a four-month hold period expiring April 23, 2024.
“No finder’s fees were paid in respect of this financing.”
In addition, insiders of the company acquired $257,000 of the private placement. participation by these insiders in the private placement was exempt from the formal valuation and shareholder approval requirements contained in multilateral instrument 61-101 protection of minority security holders in special transactions as the fair market value of their investments did not exceed 25 percent of the Company’s market capitalization.
NCMI is developing the Tier-1 Heavy Rare Earth Project, Lofdal, a globally significant deposit of the heavy rare earth metals dysprosium and terbium. Demand for these critical metals used in permanent magnets for electric vehicles, wind turbines and other electronics is driven by innovations linked to energy and technology transformations.
The geopolitical risks associated with sourcing many of these metals has become a repeated concern for manufacturers and end users. Namibia is a proven and stable mining jurisdiction.
The Lofdal Project is fully permitted with a 25-year Mining License and is under a Joint Venture Agreement with Japan Organization for Metals and Energy Security (JOGMEC).
The Company filed a robust updated PEA for “Lofdal 2B-4” on November 14, 2022, with a post-tax NPV of USD$391 million and an annual IRR of 28 percent with a capital expenditure of USD$207 million. The project is projected to generate a life of mine nominal cash flow of USD$698 million post-tax over a 16-year mine life.
