Namibia Critical welcomes Toyota as Lofdal partner

Executive Summary

• Namibia Critical Metals Inc. has selected Toyota Tsusho Corp. as a strategic partner for its Lofdal heavy rare earths project, joining the project through the Japan Organization for Metals and Energy Security (JOGMEC).
• Toyota Tsusho, a major Japanese trading house with existing rare earth separation capabilities in India, brings global supply chain expertise and direct off-take options to the project.
• The partnership strengthens the project's alignment with Japanese industrial demand for secure heavy rare earth supplies, specifically dysprosium and terbium, which are critical for high-performance permanent magnets.

Key Details

• Strategic Partner: Toyota Tsusho Corp. selected as successful bidder in JOGMEC’s public tender process to join the Lofdal project.
• Partner Profile: Toyota Tsusho is the global trading and industrial supply chain arm of the Toyota Group; it operates a rare earth separation and refinery facility in India for over 10 years.
• Project Significance: Lofdal is a Tier 1 heavy rare earth project containing dysprosium and terbium, positioned as one of the most significant deposits outside of China.
• JOGMEC Agreement Terms:
  • Namibia Critical Metals holds 95% interest; 5% held for historically disadvantaged Namibians.
  • JOGMEC earns interest through expenditures:
    • Term 1: $3 million CAD for 40% interest.
    • Term 2: $7 million CAD for additional interest (Total 40% earned).
    • Term 3: $10 million CAD for additional 10% interest.
    • Option: JOGMEC can purchase another 1% for $5 million CAD.
    • JOGMEC has first right of refusal to fully finance the project through commercial production and purchase all production at market prices.
  • Dilution protection: Collective interests of NCM and disadvantaged Namibians cannot be diluted below 26% carried working interest upon payment of $5 million CAD to JOGMEC.
  • NCM may elect to participate up to 45% by financing pro rata after the earn-in period.
• Current Financial Status:
  • JOGMEC has completed Term 2, earning a 40% interest by meeting the $10 million CAD expenditure requirement.
  • Total approved project financing to date is $18,273,000 CAD of the $20 million CAD earn-in requirement needed to reach a 50% interest.
• Strategic Benefits:
  • Adds an industrial anchor partner with direct off-take options.
  • Enhances alignment with Japanese industrial demand for secure heavy rare earth supply.
  • Increases confidence in the project's pathway toward development, financing, and commercialization.

Notable Quotes

• Darrin Campbell, President of Namibia Critical Metals: "Toyota Tsusho's participation represents a major strategic milestone for the Lofdal project. Few rare earth development projects globally benefit from the combination of government strategic support and industrial supply chain leadership that this partnership represents. This strengthens the pathway for Lofdal to become a long-term supplier of critical heavy rare earth elements to global markets."
• Toyota Tsusho: "Toyota Tsusho is pleased to join the Lofdal heavy rare earths project together with JOGMEC and Namibia Critical Metals. We look forward to supporting the development of the project to secure a sustainable supply for Japanese rare earth magnet supply chain."