Namibia Critical Metals announces discounted Private Placement in Toronto
By Freeman Ya Ngulu.
Namibia Critical Metals announced earlier this week it intends to complete a non-brokered private placement of up to US$500,000 consisting of units offered at a price of US$0.06 per unit in a Private Placement representing a 7.7% discount on the closing price of their ordinary shares on 17 November.
The placement is subject to the approval of the venture exchange on the Toronto Stock Exchange.
The proceeds will be used primarily to fund marketing and general corporate purposes. The ordinary stock and warrants issued pursuant to the Private Placement will be subject to a four-month holding period.
Each unit will consist of one ordinary share and one warrant. Each whole warrant will be exercisable for one ordinary share at a price of 10 US Cent for a period of 24 months. A maximum of 16,666,667 ordinary shares of Namibia Critical Metals will be issued pursuant to the Private Placement assuming full exercise of all warrants.
Bannerman Energy Ltd has confirmed their intent to participate in the Private Placement up to a minimum amount of US$209,000, representing their current pro rata ownership of the company of 41.8%.
Bannerman’s participation can be interpreted as a Related Party Transaction, which will have to comply with TSX rules, and would not exceed 25% of the market capitalisation of Namibia Critical Metals.
Namibia Critical Metals president, Darrin Campbell was quoted as saying “We are very pleased with the progress of our workstreams to deliver a Pre-Feasibility Study next year, which is fully funded under our joint venture with JOGMEC. This announced financing is to provide general working capital and [a] marketing [budget] and we appreciate the continued strong support of our largest shareholder, Bannerman Energy.”
Namibia Critical Metals earlier in November told investors it has commenced the final phase of drilling for the pre-feasibility study on its large-scale dysprosium-terbium Lofdal 2B-4 heavy rare earth project in Namibia.
The final drill phase, which entails seven very deep reverse circulation boreholes for a total of 2505 meters in Area 4 of the main deposit, is expected to be completed by early December this year.
While the holes were originally planned as a separate diamond core drilling campaign, the company said it was able to save costs and time after reverse circulation infill drilling earlier this year.
Five of the exploration wells are infill boreholes in the deeper part of the main ore body while two test the margins of the strike in the western section of the main body.
