Namibia Critical Metals Provides Update on Transaction With Sylla Gold Corp.

Rhea-AI Summary

Namibia Critical Metals (NCMI) has revised its share purchase agreement with Sylla Gold Corp. to divest four non-material gold properties in Namibia. The properties include Grootfontein, Erongo, Otjiwarongo, and Kaoko licences.

As part of the agreement, Sylla will acquire a 95% interest in NCMI's Namibian subsidiaries. The terms include the issuance of 3,000,000 common shares at $0.05 per share and a cash payment of $100,000 to NCMI. The transaction's closing date has been extended to August 31, 2024, and remains subject to regulatory approvals and TSX Venture Exchange acceptance.

This transaction is classified as Non-Arm's Length due to Darrin Campbell, President and director of NCMI, also being a director of Sylla.

Positive

• NCMI will receive 3,000,000 Sylla common shares valued at $0.05 per share.
• NCMI will also receive a cash payment of $100,000 from Sylla.
• The divestment allows NCMI to focus on its core assets.
• Extending the closing date to August 31, 2024, provides additional time to meet conditions.

Negative

• The transaction is subject to regulatory approvals, which could cause delays or complications.
• Being a Non-Arm's Length transaction due to overlapping directors may raise conflict of interest concerns.
• The properties being divested are categorized as non-material, potentially indicating value.

HALIFAX, NS / ACCESSWIRE / June 13, 2024 / Namibia Critical Metals Inc. ("Namibia Critical Metals" or the "Company" or "NCMI") (TSXV:NMI)(OTCQB:NMREF) announces that it has amended the share purchase agreement with Sylla Gold Corp. ("Sylla") to divest four non-material gold properties located in Namibia as announced on March 19, 2024. Under the agreement, Sylla is to acquire NCMI's 95% interest in its Namibian subsidiaries that own the rights, title and interest to the Grootfontein, Erongo, Otjiwarongo, and Kaoko licences, and certain associated assets.

Terms of the Agreement

As consideration for the acquisition, Sylla shall: (i) issue to NCMI 3,000,000 common shares at a deemed issuance price of $0.05 per common share; and (ii) make a cash payment to NCMI of $100,000. The closing date of the transaction has been amended and extended to no later than August 31, 2024. All other terms of the agreement remain in full force and effect.

Closing is subject to the satisfaction (or waiver) of a number of conditions precedent, including, but not limited to receipt of all regulatory approvals and the acceptance of the TSX Venture Exchange. The transaction is a Non-Arm's Length transaction pursuant to TSX Venture Exchange policies as Darrin Campbell, President and a director of NCMI, is also a director of Sylla.

About Namibia Critical Metals Inc.

NCMI is developing the Tier-1 Heavy Rare Earth Project, Lofdal, a globally significant deposit of the heavy rare earth metals dysprosium and terbium. Demand for these critical metals used in permanent magnets for electric vehicles, wind turbines and other electronics is driven by innovations linked to energy and technology transformations. The geopolitical risks associated with sourcing many of these metals has become a repeated concern for manufacturers and end users. Namibia is a proven and stable mining jurisdiction. The Lofdal Project is fully permitted with a 25-year Mining License and is under a Joint Venture agreement with Japan Organization for Metals and Energy Security (JOGMEC).

About Japan Organization for Metals and Energy Security (JOGMEC) and the JV

JOGMEC is a Japanese government independent administrative agency which seeks to secure stable resource supplies for Japan. JOGMEC has a strong reputation as a long term, strategic partner in mineral projects globally. JOGMEC facilitates opportunities with Japanese private companies to secure supplies of natural resources for the benefit of the country's economic development.

Rare earth elements are of critical importance to Japanese industrial interests and JOGMEC has extensive experience with all aspects of the sector. JOGMEC provided Lynas with USD$250,000,000 in loans and equity in 2011 to ensure supplies of the Light Rare Earths metals suite to the Japanese industry.

Namibia Critical Metals owns a 95% interest in the Lofdal project with the remaining 5% held for the benefit of historically disadvantaged Namibians. The terms of the JOGMEC joint venture agreement with the Company stipulate that JOGMEC provides C$3,000,000 in Term 1 and C$7,000,000 in Term 2 to earn a 40% interest in the Lofdal project. Term 3 calls for a further C$10,000,000 of expenditures to earn an additional 10% interest. JOGMEC can also purchase another 1% for C$5,000,000 and has first right of refusal to fully fund the project through to commercial production and to purchase all production at market prices. The collective interests of NCMI and historically disadvantaged Namibians cannot be diluted below a 26% carried working interest upon payment of C$5,000,000 to JOGMEC for the dilution protection. NMI may elect to participate up to a maximum of 44% by funding pro rata after the earn in period is completed.

To date, JOGMEC has completed Term 2 and earned a 40% interest by reaching the C$10 million expenditure requirement. Total approved project funding to date is C$14,541,000 of the $20,000,000 Earn-In requirement to reach 50% interest.

The common shares of Namibia Critical Metals Inc. trade on the TSX Venture Exchange under the symbol "NMI" and the OTCQB Market under the symbol "NMREF".

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information please contact -

Namibia Critical Metals Inc. Darrin Campbell, President Tel: +01 (902) 835-8760 Email: Info@NamibiaCMI.com Web site: www.NamibiaCriticalMetals.com

This news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.

SOURCE: Namibia Critical Metals Inc.

View the original press release on accesswire.com

FAQ

What is the updated closing date for the Namibia Critical Metals and Sylla Gold transaction?

The updated closing date is no later than August 31, 2024.

What are the terms of the agreement between Namibia Critical Metals and Sylla Gold?

Sylla will issue 3,000,000 common shares at $0.05 per share and make a cash payment of $100,000 to NCMI.

Which properties are included in the Namibia Critical Metals and Sylla Gold agreement?

The properties include Grootfontein, Erongo, Otjiwarongo, and Kaoko licences in Namibia.

What percentage interest is Sylla Gold acquiring from Namibia Critical Metals?

Sylla Gold is acquiring a 95% interest in NCMI's Namibian subsidiaries.

Why is the transaction between Namibia Critical Metals and Sylla Gold considered Non-Arm's Length?

The transaction is Non-Arm's Length because Darrin Campbell, President and director of NCMI, is also a director of Sylla.