Bannerman Energy has agreed to acquire a 41.8% stake in critical minerals exploration and development company Namibia Critical Metals (NMI), for a total consideration of A$7.24m ($5m).
NMI owns a majority share (95%) in the fully permitted Lofdal heavy rare earths project in Namibia. The project is the subject of an earn-in agreement with Japan Oil, Gas and Metals National (JOGMEC).
Under the terms of the share purchase agreement, Bannerman will buy 82,290,680 shares in NMI common stock, representing 41.8% of NMI’s issued capital.
It will buy 75,201,603 shares from PhilCo 192 and 7,089,077 shares from Adventure Resources Holdings, combinedly called vendors.
Bannerman said that the transaction will offer significant strategic alignment and development synergies with its flagship Etango uranium project in Namibia.
Bannerman managing director and CEO Brandon Munro said: “The Lofdal Project is on a path to produce dysprosium and terbium, two of the most strategically important metals on the planet.
“Our exposure to this future production, through a strategic shareholding in Namibia Critical Metals, is therefore a strong fit with Bannerman’s Etango Project, a near-term supplier of uranium at a globally significant scale.
“I have followed the Lofdal Project and worked with its management since living in Namibia in 2010, and am personally delighted to formalise these strong in-country working relationships.”
NMI is a publicly listed Canadian company that holds diversified portfolio of critical metals projects in Namibia, operating in the country since 2005.
In January 2020, the company has signed an agreement with JOGMEC to jointly explore, develop, exploit, refine, and distribute mineral products from the Lofdal project.
Lofdal is estimated to have the potential to support potential future heavy rare earth elements (HREE) supply, especially the crucial need for dysprosium and terbium in the production of permanent magnets.
In addition to the Lofdal project, NMI also holds prospective gold and base metals exploration licences in Namibia.
Namibia Critical Metals president and CEO Darrin Campbell said: “I am delighted that Bannerman Energy is set to become a supportive major shareholder in Namibia Critical Metals Inc.
“I look forward to working with the Bannerman team and our project partner JOGMEC to add significant further value to the Lofdal Project.
“I expect that Bannerman’s development experience, plus downstream industry and broader marketing experience, will be highly advantageous as we progress Lofdal towards being a globally significant supplier of dysprosium and terbium to the burgeoning permanent magnets sector.”
