Name of the Project
Lofdal heavy rare earths project.

Location
The project is located in north-west Namibia.

Project Owner/s
Namibia Critical Metals.

Project Description
The Lofdal project represents a unique opportunity for the development of a significant heavy rare earths supply outside of China.

The project has the potential to produce an average of 1 500 t/y of separated rare-earth oxides.

All-in Sustaining Costs/All-in Costs
Not stated.

Net Present Value/Internal Rate of Return
The project has a calculated net present value, at a 10% discount rate, of $148-million and an internal rate of return of 42%.

Capital Expenditure
Not stated.

Planned Start/End Date
Not stated.

Latest Developments
Namibia Critical Metals has signed an agreement with Japan Oil, Gas and Metals National Corporation (Jogmec) to jointly explore, develop, exploit, refine and/or distribute mineral products from the Lofdal project. The project will be held in a subsidiary of Nambia Critical metals, ProjectCo.

The agreement enables Jogmec to earn a 50% interest in the project by funding $20-million in exploration and development expenditures. Once Jogmec has completed and exercised its 50% earn-in and a feasibility study has been completed on the project, Jogmec has the right to buy an additional 1% interest in the project from Nambia Critical metals for $5-million and, thereafter, to exclusively provide funding to develop the project, subject to the company’s interest in the project not being diluted below 26%.

Exploration programmes and budgets will be approved by a management committee, established by the parties, while Namibia Critical Metals will undertake the exploration programmes as operator for ProjectCo.

Key Contracts and Suppliers
MDM Engineering Group (principal consultant), Mine Technics (pit optimisation, mine planning and operations), Swinden Geoscience (geological inputs) and Digby Wells Environmental (environmental management and planning).

Contact Details for Project Information
Namibia Rare Earths, tel +1 902 835 8760, fax +1 902 835 8761 or email info@NamibiaREE.com.