Namibia Rare Earths Inc. is seeking exchange and regulatory approvals to complete the previously announced acquisition of a majority interest in a Namibia-based portfolio of properties from Gecko Namibia (Pty.) Ltd.
The portfolio comprises seven projects, ranging from exploration opportunities to near-term feasibility stage, containing critical metals and minerals crucial for the electric vehicle industry, including cobalt, lithium, graphite, tantalum, niobium, and gold.
Under the deal signed in November, Namibia Rare Earths is required to issue 64 million shares and complete a C$500,000 private placement.
Gecko Namibia will hold about 43.75% of the outstanding shares of Namibia Rare Earths following closing.
Namibia Rare Earths secured the right to acquire a 95% interest in a portfolio of exploration properties consisting of 14 exploration prospecting licenses and one mineral deposit retention license. The company will acquire Gecko Namibia's rights under an option deal to acquire a 60% interest in a further exploration prospecting license, which could be increased to 80%.
Namibia Rare Earths is also required to incur expenditures of C$84,000 in the first year and C$422,000 in the second year to keep the entire portfolio of properties in good standing.
The Kunene copper-cobalt project, Black Range graphite project, Warmbad lithium project, Epembe tantalum-niobium project, Grootfontein nickel-precious group metals project, Otjiwarongo carbonatite project and Erongo gold project are included in the transaction.
The proceeds from the financing will be used to carry out work on the properties, with an initial focus on advancing the Kunene cobalt-copper project and to fund general corporate requirements.
After the deal closing, Gecko Namibia will nominate two members to the five-member board of Namibia Rare Earths with Gerald McConnell remaining as chairman. Pine van Wyk will be appointed CEO of Namibia Rare Earths, while Donald Burton will remain the company's president.
The transaction and financing are expected to close by Jan. 31, 2018.