Namibia Critical Metals ( TSX-V:NMI , OTCQB:NMREF ) expects to wrap up approvals for a new joint venture at its Lofdal heavy rare earth project within another 30 days, the company said on Tuesday.
The Toronto-based company is working with partners Japan Organization for Metals and Energy Security (JOGMEC) and Toyota Tsusho Corporation to complete the definitive shareholder arrangements needed to implement the new ownership structure and issue a 50% interest to TJNREC.
Namibia Critical Metals ( TSX-V:NMI , OTCQB:NMREF ) owns a 95% interest in Lofdal, with the remaining 5% held for the benefit of Historically Disadvantaged Namibians.
The fully permitted project is among the largest known undeveloped sources of dysprosium, terbium and yttrium, heavy rare earths used in electric vehicles, renewable energy and advanced defense technologies.
JOGMEC and Toyota Tsusho have met the C$23 million expenditure requirement to earn a 50% interest in the project.
Under the JOGMEC agreement, the Japanese agency provides C$3 million in the first term and C$7 million in the second term to earn a 40% interest. A third term calls for a further C$13 million in spending to earn an additional 10%. JOGMEC can also buy another 1% for C$5 million and holds first right of refusal to fully fund the project through to commercial production and purchase all output at market prices.
Namibia Critical Metals' interest cannot be diluted below 21%, provided it pays JOGMEC $5 million for dilution protection. It may also elect to participate up to a maximum of 44% or 45% by funding pro rata after a final investment decision.
JOGMEC is a Japanese government agency that seeks to secure stable resource supplies for the country. Toyota Tsusho is the trading arm of the Toyota Group.
