NAMIBIA – Namibia Critical Metals Inc., a Canadian public company, has secured an N$65 million (US$4.37m) investment from Alumina Partners (Ontario) Ltd in Canada.

Announcing the investment facility recently, company president Don Burton said the financial injection is structured to provide the company timely access to private placement financing in times of need and help expedite exploring for gold deposits in central Namibia.

An official statement by the company indicated the terms of the investment agreement will see it access a facility of N$65 million (US$4.37m), at its sole discretion through equity private placement tranches of up to CAD$250 000 (US$191,280) each.

“The Alumina facility will provide the company with the flexibility to accelerate high-priority exploration programmes outside of the Lofdal Heavy Rare Earth joint venture, which is already fully funded by our joint venture partner, Japan Oil, Gas and Metals National Corporation (JOGMEC),” Burton said.

“Exploration of our 2 000 square kilometre land package in the emerging Navachab-Otjikoto gold belt of central Namibia can now be accelerated with the objective of identifying gold targets using systematic soil geochemical surveys in a manner similar to what has been utilised by Osino Resources.”

The investment facility will see each tranche placed in units, with each unit comprising one common share and half of one common share purchase warrant.

The units will be priced at a discount of 15% to 25% from the most recent closing price of shares on the Toronto Stock Exchange’s Venture Exchange. Warrants will be issued at a 40% premium over the market price of the shares over a term of 24 months.

“There are no standby charges or other upfront fees associated with the investment agreement or any penalties for not drawing the full facility. Each tranche of units issued under the investment agreement will be subject to the acceptance of the TSX Venture Exchange, and securities issued will be subject to the customary four-month hold period,” the statement read.

The Namibian company said the proceeds from the first drawdown will be used to accelerate gold exploration across an area of 1 638 square kilometres at Grootfontein.

“The two areas of resource focus that present the greatest value proposition right now are rare earth elements and counter-inflationary precious metals … And investing in Namibia now will allow us to get exposure to both”, Adi Nahmani, managing director of Alumina Partners, commenting on the deal.

“We look forward very much to seeing this veteran management team execute against the plan and hit key milestones even sooner than previously expected.”

A total of 5 000 samples over many of the principal target areas have already been collected and will now be submitted for gold analysis.

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