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Bannerman to acquire stake in Namibia Critical Metals

Australian uranium development company Bannerman Energy is set to acquire stake in Namibia Critical Metals (NMI).

This follows an ink deal which will see Bannerman acquiring 41.8% stake in the NMI. Under the agreement, Bannerman will buy 82,290,680 common shares in NMI from PhilCo 192 and Adventure Resources.

The deal consideration includes A$7.24m in cash and the issuance of 8,463,367 Bannerman fully paid ordinary shares. NMI’s core asset is the 95%-owned advanced and fully permitted Lofdal Heavy Rare Earths Project in Namibia. The remaining 5% stake in the project is held for the benefit of historically disadvantaged Namibians. The dysprosium-terbium project is subject of an earn-in agreement with Japan Oil, Gas and Metals National Corporation (JOGMEC).

Future production

“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,” said Bannerman managing director and CEO Brandon Munro.

Bannerman expects the acquisition to provide significant alignment and synergies with its advanced-stage Etango tantalum-niobium-uranium project in Namibia. The transaction also complies with Bannerman’s objective of ‘social leadership in the supply of raw materials for emissions-free power’.

“I expect that Bannerman’s development experience, plus downstream industry and broader marketing experience, will be highly advantageous as we progress Lofdal towards being a globally significant supplier of dysprosium and terbium to the burgeoning permanent magnets sector,” Namibia Critical Metals president and CEO Darrin Campbell said.

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