Bannerman Energy Limited (ASX:BMN) has agreed to acquire a 41.8% shareholding in TSX Venture Exchange (TSXV)-listed critical minerals exploration and development business, Namibia Critical Metals Inc.
NMI’s flagship asset is the 95%-owned, advanced and fully permitted Lofdal Heavy Rare Earths Project in Namibia. The Lofdal Project 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 41.8% of NMI’s issued capital,
Bannerman believes the NMI Share Acquisition offers significant strategic alignment and development synergies with Bannerman’s flagship Etango Uranium Project in Namibia. The total consideration also represents a significant implied discount to current NMI market trading value.
NMI’s Lofdal Project is globally significant to potential future Heavy Rare Earth Elements (HREE) supply, in particular the crucial need for dysprosium and terbium in the production of permanent magnets. This is a function of both its large scale and simple xenotime mineralogy.
Bannerman’s Managing Director and CEO, Brandon Munro, said the NMI Share Acquisition provides underlying asset exposure that is highly complementary to Bannerman’s Etango Uranium Project in terms of both domicile and the role of heavy rare earths in enabling decarbonisation. The NMI Acquisition is also consistent with Bannerman’s mission: social leadership in the supply of raw materials for emissions free power.
“The Lofdal Project is on a path to produce dysprosium and terbium, two of the most strategically important metals on the planet,” Mr Munro said.
“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.
“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 ESG (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.”
For further information please visit: https://bannermanenergy.com/