Rare Earths exploration outfit targets private placement for further funding
The president of the company responsible for the Lofdal Rare Earth Project, Namibia Rare Earths Inc., Don Burton, announced last week that the company intends to issue, by way of non-brokered private placement up to 7,142,857 common shares at a price of US$0.07 per share for gross proceeds of up to US$500,000.
The net proceeds of the private placement will be used for general working capital. The placement is expected to close on or before 28 April 2017, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals including the approval and acceptance by the Toronto Stock Exchange.
All securities issued and reconciled to the Private Placement will be subject to a four-month hold period from the date of closing.
Namibia Rare Earths also announced that the Chief Financial Officer, Teri Anderson has stepped down and will be replaced by Darrin Campbell, a Chartered Accountant and Certified Management Accountant with approximately 20 years’ experience in various financial roles primarily in the venture capital and resource sectors.
Anderson served as CFO of Namibia Rare Earths since its establishment in 2010 and has made significant contributions to the milestones achieved including taking the Lofdal Rare Earth Project from exploration through to the filing of an application for a mining license. The Lofdal project comprises 200 square kilometres of exceptional heavy rare earth enrichment of more than 80%, opening the door for the discovery of a world class heavy rare earth deposit.
A preliminary economic assessment concluded that the Lofdal project currently has the potential to produce an average of 1,500 tonnes per annum of separated rare earth oxides which would generate after tax cumulative cash flow of US$259 million with a net present value of US$148 million.
After considering various factors, including the continued listing requirements and the on-going costs associated with having its common shares listed on the Toronto Stock Exchange (TSX), Namibia Rare Earths has applied for voluntary delisting of its common shares from the TSX.
The company intends to transition the listing of its common shares onto the TSX Venture Exchange under the existing ticker “NRE”. Application for listing has been made to the venture exchange. The company stated that it is providing the necessary documentation to complete the listing process. The listing on the TSXV is subject to final approval and acceptance by the TSXV.
Namibia Rare Earths expects the delisting of its shares from the TSX and the transition to the TSXV to happen simultaneously.