Can you provide an introduction to Namibia Critical Metals?

Namibia Critical Metals is a company listed on the TSX Venture Exchange and has been active in Namibia since 2011. Previously known as Namibia Rare Earths, we emerged as a spinoff from our predecessor company, Etruscan Resources. Etruscan successfully developed three gold projects in West Africa, which were later sold to Endeavour Mining. We retained the Lodfdal rare earth project and have transformed it into a world-class heavy rare earth project. Additionally, we have a substantial portfolio of critical and precious metals in Namibia, but our current focus is primarily on the tier-one Lofdal deposit.

What sets the Lofdal heavy rare earth project apart from others?

The Lofdal project is unique as it is a deposit rich in dysprosium and terbium, which are classified as heavy rare earth elements. As far as we are aware, Lofdal is one of only two xenotime-type heavy rare earth deposits under development worldwide. Over the past two years, significant progress has been made, establishing Lofdal as one of the richest dysprosium and terbium deposits outside of China. Following an extensive drilling campaign in 2020, we expanded our resource from 6 million tonnes to an impressive 53 million tonnes. The deposit contains approximately 4.7 million kilograms of dysprosium and 725,000 kilograms of terbium. These elements, alongside neodymium and praseodymium, are crucial components for the production of permanent magnets used in electric vehicle (EV) motors, with dysprosium being particularly valuable. China has traditionally dominated this market, but there is a growing need for alternative supply sources in Japan, North America, and Europe.

Could you provide more details on the joint venture agreement with the Japanese state agency JOGMEC?

In 2020, we entered into a transformative transaction with the Japan Organization for Metals and Energy Security (JOGMEC), a state agency responsible for securing natural resource supply for Japanese industries. Under the joint venture (JV) agreement, JOGMEC has the option to fund up to CAD 20 million for exploration and development activities at Lofdal. In return, they have the right to earn a 50% interest in the project. Currently, we have received CAD 8 million out of the total amount. JOGMEC also has the opportunity to acquire an additional 1% interest for a controlling stake, at which point we can either participate at 49% or dilute to a carried working interest of no less than 26%. This JV not only provides project financing opportunities without further dilution for our shareholders but also includes an operator fee that covers many of our overhead costs. A decade ago, JOGMEC entered a similar JV with Lynas Rare Earths, an Australian explorer that is now the largest rare earth company globally.

Can you briefly outline the shareholder structure of Namibia Critical Metals?

Our company has a tightly held stock, with approximately 196 million shares outstanding and 215 million fully diluted. Since May of this year, our largest single shareholder is Bannerman Energy, which owns 42% of the company. Additionally, our directors and officers hold another 24% of the shares.

What can you tell us about operating in Namibia?

Namibia is regarded as one of the most favorable mining jurisdictions in Africa, ranking second in the continent in the 2021 Fraser Institute Survey of Mining Companies Report. The country still holds significant exploration potential and has recently surpassed Canada as one of the world’s top uranium exporters. We have built strong relationships with both the government and the local community of Khorixas, where our operations are located. Our company has made a conscious effort to hire locally and invest in mutual infrastructure projects. Namibia Critical Metals has been involved in corporate social responsibility (CSR) initiatives long before the term became widely known. For instance, we have been sponsoring the Khorixas orphanage since 2008.

What are the next steps for Namibia Critical Metals?

Following the 2020 drilling program and the issuance of a 25-year mining license by the Namibian government, we have updated the preliminary economic assessment (PEA) and are now embarking on a pre-feasibility study (PFS). We anticipate a swift and cost-effective progression through the PFS stage by leveraging the high-quality work completed for the PEA. Over the next 12 months, we expect to publish the PFS and subsequently move towards a definitive feasibility study (DFS) and a final construction decision.