Namibia Critical Metals Inc. Announces JOGMEC Joint Venture Update
- JOGMEC is initiating a public tender process to transfer its position to Japanese industrial partners to participate in the Lofdal Heavy Rare Earth Joint Venture as provided for in the original JV agreement
- JOGMEC has received interest in the JV from several Japanese companies after significantly increasing the NI43-101 compliant resource, obtaining a 25 year mining license and recently having a solid Preliminary Economic Assessment (PEA) issued.
- JV development activities are continuing unaffected by the tendering process, with PFS phase activities having commenced and ongoing on the much larger Lofdal 2B-4 project
- The public tendering process is expected to end on March 13, 2023
HALIFAX, NS / ACCESSWIRE / November 28, 2022 / Namibia Critical Metals Inc. (“Namibia Critical Metals” or the “Company” or “NMI”) (TSXV:NMI)(OTC PINK:NMREF) is advancing the Lofdal Heavy Rare Earth Project in Namibia with its joint venture partner JOGMEC Ahead. The Company filed a robust updated PEA on November 14, 2022 with a pre-tax NPV of $632.7 million and a pre-tax annual IRR of 34% on a capital expenditure of $207 million. The project is expected to generate nominal life-of-mine cash flow of $1.1 billion pre-tax over a 16-year mine life. The November 14, 2022 PEA is based on mining and processing only 50% of the NI43-101 mineral resource estimate.
The Company has commenced work to complete a Pre-Feasibility Study (PFS) for the significantly larger Lofdal 2B-4 project within the next 12 to 15 months with geotechnical drilling at both proposed open pits commencing earlier this month.
The Lofdal deposit has the potential for significant production of dysprosium and terbium, two of the most valuable heavy rare earth elements, and aims to become a long-term, sustainable source of heavy rare earth elements.
Darrin Campbell, President of Namibia Critical Metals stated:
“Our joint venture with JOGMEC has had tremendous results with a six-fold…