Namibia Critical Metals Joins Rare Earth Industry Association

Namibia Critical Metals Inc. announced that it had joined the Brussels-based Rare Earth Industries Association. The Rare Earth Industry Association (REIA) is an international non-profit organization representing the global rare earth (REE) industry. Founded in June 2019, it is chaired by GloREIA, the internationalization project of EIT raw materials.

Rare Earth Industry Association has members representing all major countries worldwide. In this global context, REIA is well placed to promote a better understanding of the value chain of rare earth elements.

Darin Campbell, President of Namibia Critical Metals, said: "We are delighted to be joining REIA as part of this growing and important industry body. As we continue to advance our Lofdal heavy rare earths project, it is important to work with JOGMEC partners to maintain contact with key rare earth stakeholders and comply with industry best practices.

The Japan Oil, Gas and Metals National Corporation (JOGMEC), an independent administration of the Japanese government, seeks to provide a stable supply of resources to Japan. JOGMEC has a reputation as a long-term strategic partner for global mineral projects. JOGMEC's statutory areas of responsibility relate to oil and gas, metals, coal and geothermal energy. JOGMEC provides opportunities to work with Japanese private companies to ensure the supply of natural resources for Japan's economic development.

Rare earths are vital to Japan's industrial interests, and JOGMEC has extensive experience in all aspects of the industry. JOGMEC provided Lymas with a $250 million loan and equity stake in 2011 to ensure the supply of light rare earth metals to Japanese industry.

The company currently owns 95 per cent of the Lofdal project, with the remaining 5 per cent in the interests of historically disadvantaged Namibians. The terms of JOGMEC's joint venture agreement with the Company provide JOGMEC with $3,000,000 in Phase 1 and $7,000,000 in Phase II to acquire a 40% interest in the Lofdal project. Phase 3 requires an additional expenditure of $10,000,000 to earn an additional 10 per cent interest.

JOGMEC may also purchase an additional 1% at a price of USD 5,000,000 and has the right to refuse to fully fund the project until commercial production and to purchase all production at market prices. The collective interests of NMI and historically disadvantaged Namibians cannot be diluted below 26 per cent. To date, JOGMEC has funded expenditures for phases 1 and 2 totalling $6,600,000.

Participation to the Rare Earth Industry Association is a significant step for the company, Namibia Critical Metals Inc. hosts a diversified exploration portfolio and advanced phase projects in Namibia, focusing on developing sustainable and ethical metals sources for batteries, electric vehicles and related industries. The two advanced phases of the portfolio are Lofdal and Epembe. The company also has important land locations in areas conducive to gold mining.

The Lofdal Heavy Rare Earths project is the company's most advanced project, with a mining license (ML 200) issued in 2021 for full licensing. The project is being developed in a joint venture with JOGMEC to provide Japan with a sustainable supply of heavy rare earths, most notably dysprosium and terbium.