Namibia Critical Metals (TSX-V:NMI, OTCQB:NMREF) said it has agreed with joint venture partner Japan Organization for Metals and Energy Security to amend their earn-in agreement for the Lofdal heavy rare earths project in northwestern Namibia, adding funding to advance the project toward development.
Under the revised terms, JOGMEC will increase its earn-in expenditure commitment by C$3 million to support completion of a definitive feasibility study for the Lofdal 2B-4 deposit, alongside engineering, mine optimization and infrastructure planning work, the company said.
The additional funding will also cover resource drilling at the planned Area 2B mine and the Area 5 prospect, as the partners seek to de-risk the project and refine development plans.
The amendment includes an option for JOGMEC to provide pre-final investment decision capital funding, which would be non-interest bearing and non-dilutive to Namibia Critical Metals. The company holds the option to maintain its ownership stake by contributing its share of funding following a final investment decision.
The partners are targeting completion of the feasibility study in the second quarter of 2027. The amendment does not change the broader strategic framework of the joint venture, which is focused on developing Lofdal as a long-term supply of heavy rare earth elements for Japanese industry.
Lofdal is one of a limited number of deposits globally enriched in heavy rare earths, materials considered critical for advanced technologies including electric vehicles and wind turbines.
