Namibia Critical Metals Stock Price, News & Analysis

Namibia Critical Metals Inc. (OTCQB: NMREF; TSXV: NMI) is a mining company focused on the development of the Lofdal Heavy Rare Earth Project in Namibia. According to company disclosures, Lofdal is described as a Tier-1 heavy rare earth project and a globally significant deposit of the heavy rare earth metals dysprosium and terbium, with additional exposure to yttrium. The project is fully permitted with a 25-year Mining License and is being advanced through a joint venture with the Japan Organization for Metals and Energy Security (JOGMEC).

The company states that demand for the metals targeted at Lofdal is driven by their use in permanent magnets for electric vehicles, wind turbines and other electronics, and that geopolitical risks around sourcing many of these metals have become a repeated concern for manufacturers and end users. Namibia Critical Metals positions Lofdal within what it describes as a proven and stable mining jurisdiction in Namibia.

Core asset: Lofdal Heavy Rare Earth Project

The Lofdal project is licensed under Mining License ML200, which the company reports is valid for 25 years to May 10, 2046. The license covers a district-scale heavy rare earth element (HREE) system in the Kunene Region of Namibia, including the Area 4 and Area 2B deposits that form the basis of the current pre-feasibility work. The company reports that Lofdal is one of the few rare earth deposits globally that contains mostly heavy rare earth elements, with dysprosium and terbium identified as the economically most important elements.

According to technical disclosures, the Lofdal property is centered on the Neoproterozoic Lofdal Intrusive Complex and hosts rare earth element mineralization in multiple structurally controlled zones of hydrothermal alteration. The main rare earth mineral is identified as xenotime, a heavy rare earth phosphate that occurs disseminated throughout mineralized zones. The company reports that HREE mineralization extends over a large area and that only a small portion, notably Area 4 and Area 2B, has been drilled to resource level to date.

Mineral resources and project scale

Namibia Critical Metals cites an updated Mineral Resource Statement for the Lofdal 2B-4 project prepared under NI 43-101. The MSA Group (Pty) Ltd is reported as the author of the 2024 Mineral Resource Estimate. At a 0.1% TREO cut-off grade (including Y₂O₃), the company reports combined Measured and Indicated Mineral Resources of 58.5 million tonnes at 0.16% TREO for Area 4 and Area 2B, along with additional Inferred Resources. Within these resources, contained tonnages of dysprosium oxide and terbium oxide are disclosed, as well as total rare earth oxide tonnage including yttrium.

The company notes that Mineral Resources, which are not Mineral Reserves, have no demonstrated economic viability, and that Mineral Resources are inclusive of those converted to Mineral Reserves. A separate pre-feasibility study (PFS) for the Lofdal 2B-4 project presents economic scenarios based on different rare earth pricing assumptions, mine life, production rates and capital costs. These PFS results, including net present value, internal rate of return, life-of-mine cash flow and production metrics, are summarized in company news releases and technical reports.

Project development and technical work

Namibia Critical Metals reports that it has conducted extensive exploration and project development work at Lofdal over more than a decade. This includes geophysical surveys and drilling totaling over 58,000 meters in more than 400 boreholes, as well as the development of an open pit in the central part of the Area 4 deposit to extract bulk samples.

The company describes a multi-stage processing flowsheet that has been tested at bench and pilot scale. Key elements include:

• Ore sorting: Testing of X-ray transmission (XRT) and X-ray fluorescence (XRF) sorting technologies on low- and medium-grade ore, including pilot-scale work with TOMRA equipment and Gecko Namibia. The company reports that XRT sorting can upgrade run-of-mine material by rejecting waste lithologies and improving feed grade to flotation.
• Flotation: Extensive flotation test work at SGS Lakefield and other laboratories, with over 170 individual tests. The company reports that flotation is the key beneficiation step for xenotime ore and that optimized conditions have produced concentrates with elevated TREO grades and recoveries, with higher recoveries for heavy rare earths than for light rare earths.
• Hydrometallurgy: Pilot-scale hydrometallurgical test work at SGS Lakefield has led to a simplified flow sheet for producing a high-grade heavy rare earth carbonate. The company reports that the revised flowsheet removes several unit operations from an earlier design and reduces overall reagent consumption, while achieving high dissolution and recovery rates for dysprosium and terbium.

The company has also described value engineering initiatives for the pre-feasibility study, including increasing run-of-mine throughput, optimizing mine scheduling, conducting additional geotechnical drilling to refine pit designs, and evaluating water and power supply options. These work streams are intended to inform operating and capital cost estimates for the project.

Joint venture with JOGMEC

Namibia Critical Metals states that the Lofdal project is being developed under a joint venture agreement with the Japan Organization for Metals and Energy Security (JOGMEC), a Japanese government independent administrative agency that seeks to secure stable resource supplies for Japan. JOGMEC is described as having extensive experience in the rare earth sector and a history of investing in rare earth projects to support Japanese industrial supply chains.

Under the joint venture terms disclosed by the company, JOGMEC is to provide staged funding to earn an interest in the Lofdal project. The company reports that:

• JOGMEC is to provide C$3,000,000 in Term 1 and C$7,000,000 in Term 2 to earn a 40% interest.
• Term 3 calls for a further C$10,000,000 of expenditures to earn an additional 10% interest.
• JOGMEC can purchase an additional 1% interest for C$5,000,000.
• JOGMEC has a first right of refusal to fully fund the project through to commercial production and to purchase all production at market prices.

The company reports that JOGMEC has completed Term 2 and earned a 40% interest by reaching the C$10 million expenditure requirement, and that total approved project funding under the earn-in has progressed toward the C$20,000,000 requirement to reach a 50% interest. Namibia Critical Metals states that it currently owns a 95% interest in the Lofdal project, with the remaining 5% held for the benefit of historically disadvantaged Namibians, and that the collective interests of the company and historically disadvantaged Namibians cannot be diluted below a 26% carried working interest upon payment of a specified amount to JOGMEC.

Ownership, jurisdiction and trading

According to company news releases, Namibia Critical Metals is advancing Lofdal through a subsidiary structure in Namibia, with a 95% project interest and a 5% interest held for historically disadvantaged Namibians as part of the Mining License conditions. The company emphasizes that Namibia is a proven and stable mining jurisdiction and that Lofdal is fully permitted for mining under ML200.

The company’s common shares trade on the TSX Venture Exchange under the symbol NMI and on the OTCQB Market in the United States under the symbol NMREF. The sector classification associated with the stock includes mining, quarrying and oil and gas extraction, with a specific industry description referencing dimension stone mining and quarrying, while the company’s own disclosures focus on heavy rare earth element exploration and development.

Strategic focus

Namibia Critical Metals consistently describes its strategy as centered on developing the Lofdal heavy rare earth project to serve long-term demand for dysprosium, terbium and yttrium, particularly in applications such as permanent magnets and advanced technologies. The company highlights the role of its joint venture with JOGMEC in targeting a long-term, sustainable supply of heavy rare earths to Japan and notes that rare earth elements are of critical importance to Japanese industrial interests.

Investors reviewing NMREF stock typically consider factors disclosed by the company such as the scale and grade of the Lofdal resource, progress through technical studies like the pre-feasibility study, results of metallurgical and process optimization work, and the evolution of the joint venture funding and ownership structure with JOGMEC. Company news releases and technical reports provide detailed information on these aspects, along with cautionary statements regarding forward-looking information and project risks.

Frequently asked questions about Namibia Critical Metals (NMREF)

• What does Namibia Critical Metals Inc. do?
  Namibia Critical Metals Inc. is focused on developing the Lofdal Heavy Rare Earth Project in Namibia. The company describes Lofdal as a Tier-1 heavy rare earth project and a globally significant deposit of dysprosium and terbium, with additional yttrium, and is advancing the project through exploration, technical studies and metallurgical test work.
• Where is the Lofdal project located?
  The company reports that Lofdal is located in the Kunene Region of the Republic of Namibia. It describes the project as being part of a district-scale heavy rare earth mineralized system centered on the Lofdal Intrusive Complex, with mineralization mapped over a large area.
• What makes Lofdal significant in the rare earth sector?
  According to company disclosures, Lofdal is one of the few rare earth deposits in the world that contains mostly heavy rare earth elements, with dysprosium and terbium identified as key economic drivers. The company highlights that these metals are important for permanent magnets and that supply security is a concern for manufacturers and end users.
• What is the status of the Lofdal Mining License?
  Namibia Critical Metals states that the Lofdal Project is fully permitted with a 25-year Mining License (ML200), issued by Namibia’s Ministry of Mines and Energy and valid to May 10, 2046. The license covers the entire prospective area of the known mineralized zones at Lofdal.
• How is JOGMEC involved with Namibia Critical Metals?
  The company reports that Lofdal is under a joint venture agreement with the Japan Organization for Metals and Energy Security (JOGMEC). JOGMEC is funding staged exploration and development expenditures to earn up to a 50% interest in the project, with the potential to acquire an additional 1% and a first right of refusal to fully fund the project through to commercial production and purchase all production at market prices.
• What ownership does Namibia Critical Metals report at Lofdal?
  Namibia Critical Metals states that it owns a 95% interest in the Lofdal project, with the remaining 5% held for the benefit of historically disadvantaged Namibians. It also notes that the combined interest of the company and historically disadvantaged Namibians cannot be diluted below a 26% carried working interest under the joint venture terms.
• What technical work has been completed on the project?
  Company news releases describe extensive drilling, bulk sampling, ore sorting tests, flotation test programs and hydrometallurgical pilot plant work. These programs have been used to define mineral resources, optimize processing flowsheets and support a pre-feasibility study for the Lofdal 2B-4 project.
• On which exchanges does Namibia Critical Metals trade?
  According to the company, its common shares trade on the TSX Venture Exchange under the symbol NMI and on the OTCQB Market in the United States under the symbol NMREF.