(Kitco News) - Bannerman Energy (ASX: BMN), an Australian listed uranium development company, announced yesterday that it has agreed to acquire a 41.8% shareholding in Namibia Critical Metals (TSX-V: NMI).
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).
Bannerman has agreed to acquire a total of 82,290,680 common shares in NMI, representing 41.8% of NMI's issued capital, for total consideration of A$7.24M cash and the issue of 8,463,367 BMN fully paid ordinary shares.
The company said that NMI's Lofdal project is "globally significant" to potential future heavy rare earth elements supply, in particular the crucial need for dysprosium and terbium in the production of permanent magnets.
Importantly, Bannerman noted that the NMI share acquisition provides underlying asset exposure that is highly complementary to the company's Etango uranium project - which is also located in Namibia - in terms of both domicile and the role of heavy rare earths in enabling decarbonization.
Managing Director and CEO Brandon Munro commented, "The Lofdal project is on a path to produce dysprosium and terbium, two of the most strategically important metals on the planet. I have followed the Lofdal project and worked with its management since living in Namibia in 2010, and am personally delighted to formalize these strong in-country working relationships. I am also pleased that long standing relationships with NMI's major shareholders have enabled a direct, efficient transaction at this point in time."
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NMI is a Canadian public company listed on the TSX Venture Exchange. It holds a diversified portfolio of critical metals projects, all located within the country of Namibia. In addition to the Lofdal Project, which offers a sustainable supply of dysprosium and terbium, NMI also has prospective gold and base metals exploration licences in Namibia.
Bannerman Energy is a uranium development company listed on the Australian, OTC Markets and Namibian stock exchanges. Its flagship asset is the advanced Etango uranium project located in the Erongo Region of Namibia. Etango has environmental approvals for the proposed mine and external mine infrastructure, based on a 12-year environmental baseline.
