Bannerman Energy acquires 41.8% stake in Namibia Critical Metals

NMI’s flagship asset is the 95%-owned, advanced and fully permitted Lofdal Heavy Rare Earths Project (Lofdal 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 Corp. (JOGMEC).

BMN has agreed to acquire a total of 82.2 million common shares in NMI, representing 41.8% of NMI’s issued capital, from PhilCo 192 (Pty) Ltd. (75.2 million shares) and Adventure Resources Holdings (Pty) Ltd. (7.0 million shares), for total consideration of AUS$7.24 million cash and the issue of 8.4 million BMN fully paid ordinary shares, paid proportionately to each vendor. BMN has no existing holding of common shares or other securities in NMI.

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Whilst a relatively modest scale, with consideration components that respectively represent approximately 12% of BMN’s current cash balance and 0.6% of the company’s current issued shares, the NMI share acquisition offers significant strategic alignment and development synergies with BMN’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. The NMI share acquisition provides underlying asset exposure that is highly complementary to BMN’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.