Namibia Critical Metals Inc. (NCMI) announced that its Japanese partners have fulfilled the C$23 million expenditure requirement to earn a 50% interest in the Lofdal Heavy Rare Earth Project. This milestone marks significant progress, though final shareholder and regulatory approvals are still pending.
The partners, including the Japan Organisation for Metals and Energy Security (JOGMEC) and Toyota Tsusho Corporation, continue to work closely with NCMI to secure the remaining approvals, which include consent from NCMI shareholders and final clearance from the TSX Venture Exchange.
Following the earn-in, the partners formed TJ Namibia Rare Earths Corporation (TJNREC), a special-purpose entity established to hold Japan’s 50% stake in the project. JOGMEC has committed up to C$47.668 million (approximately ¥5.5 billion) to further capitalize TJNREC, supporting the advancement of the project’s Definitive Feasibility Study (DFS) and the path toward a final investment decision (FID).
The C$23 million earn-in partly funded an expanded DFS budget of approximately C$11 million approved in July, with further expenditures classified as pre-FID capital. Under the joint venture terms, these additional funds will not dilute NCMI’s ownership or accrue interest before FID and will finance essential activities such as permitting, detailed engineering, and long-lead procurement.
Toyota Tsusho joined the partnership in March 2026 and, alongside JOGMEC, is actively advancing the Lofdal project, aiming for a commercialisation decision within Japan’s 2026 financial year. Located in Namibia’s Kunene Region, Lofdal hosts valuable heavy rare earth elements like dysprosium and terbium, which are critical for permanent magnets used in electric vehicle motors. Japan views this project as a strategic step toward diversifying and securing its critical mineral supply chain.
The ongoing DFS encompasses metallurgical testing, mineral separation, detailed engineering, environmental permitting, and mine planning. Additionally, NCMI is conducting a major drilling campaign in 2026, targeting resource expansion and infill drilling, with 83 reverse-circulation holes planned to total around 13,000 metres over five months.
The original earn-in agreement required staged expenditures by JOGMEC, C$3 million in the first term, C$7 million in the second, and C$13 million in the third – culminating in the C$23 million total necessary to earn the 50% interest. The outstanding step now is securing the final approvals for TJNREC to officially acquire this interest.
NCMI reaffirmed its commitment to advancing the process and will provide further updates once shareholder and TSX Venture Exchange approvals are obtained.
