Listed Australian uranium development company Bannerman Energy is set to acquire a 41.8% stake in Namibia Critical Metals Inc (NMI) from PhilCo 192 and Adventure Resources for N$81.1 million.
As part of the deal, Bannerman will issue 8,463,367 ordinary shares, paid proportionately to PhilCo 192 and Adventure Resources.
NMI’s flagship asset is the 95%-owned, advanced and fully permitted Lofdal heavy rare earths project in Namibia, which is the subject of an earn-in agreement with leading global resource strategic partner, Japan Oil, Gas and Metals National Corporation (Jogmec).
“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,” Bannerman MD and CEO Brandon Munro said.
“As Lofdal moves closer to production, our partnership offers strong potential to leverage Bannerman’s extensive in-country expertise and credentials, in particular in the environment, social and governance sphere. I am confident that there is a strong alignment of intent and values between Bannerman and NMI, which has strong community and government relationships built during their 15-year presence in Namibia.”
Bannerman said the acquisition cost accounts for 12% of the company’s current cash balance and 0.6% of its current issued shares and offered significant strategic alignment and development synergies with Bannerman’s flagship Etango uranium project in Namibia.
Namibia Critical Metals Inc is a Canadian public company listed on the TSX Venture Exchange which holds a diversified portfolio of critical metals projects all within Namibia.
Bannerman Energy is a uranium development company, with its flagship asset being the Etango Project located in the Erongo Region, which is currently a subject of a Definitive Feasibility Study with completion targeted for the September 2022 quarter.
