PERTH (miningweekly.com) – ASX-, NSX- and OTCQB-listed Bannerman Energy has struck a deal to acquire 41.8% shareholding in TSX-V-listed critical minerals explorer Namibia Critical Metals Inc (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 more than 82.2-million shares in NMI, representing 41.8% of NMI’s issued capital, from shareholders PhilCo 192 and Adventure Resources Holdings for total consideration of A$7.24-million in cash and the issue of more than 8.4-million fully paid ordinary shares.

Bannerman told shareholders on Thursday that while the acquisition cost was relatively modest, accounting for 12% of the company’s current cash balance and 0.6% of its current issued shares, the NMI acquisition offered significant strategic alignment and development synergies with Bannerman’s flagship Etango uranium project in Namibia.

The NMI acquisition is also consistent with Bannerman’s mission: social leadership in the supply of raw materials for emissions-free power, the company said.

“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.

“I have followed the Lofdal project and worked with its management since living in Namibia in 2010, and am personally delighted to formalise 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.

“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. After meeting at Lofdal with NMI president Darrin Campbell, and key Jogmec representatives, 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.”