Namibia Critical Metals Launches Next Phase of Lofdal Definitive Feasibility Study Including Further Value Addition in Namibia

Namibia Critical Metals Inc. announced that the Joint Management Committee approved the next phase of the Lofdal Definitive Feasibility Study, allocating up to C$11 million in additional funding. The company awarded its first major metallurgical and geometallurgical contracts to SGS Canada Inc., transitioning the project into full DFS execution.

The expanded work program focuses on validating a processing flowsheet that produces separate Light Rare Earth Carbonate and Heavy Rare Earth Carbonate products, aligning with Namibia's domestic beneficiation goals. DFS work programs include pilot-scale flotation, an integrated hydrometallurgical pilot plant, rare earth separation optimization, and a geometallurgical program using 98 representative samples. Expected outcomes include validating pilot performance, demonstrating separated LREC/HREC production, generating engineering design criteria, and advancing environmental permits.

JOGMEC has completed Term 2, earning a 40% interest. Total funding to date is C$19.973 million of the C$23 million required for a 50% interest. Term 3 requires a further C$13 million to earn an additional 10%.

Namibia Critical Metals Inc. (NMI) announced a development milestone that follows logically from its December 2025 Pre-Feasibility Study (PFS) and the March 2026 JOGMEC earn-in amendment. The company secured C$11 million to execute the Definitive Feasibility Study (DFS) and awarded contracts to SGS Canada, a move designed to de-risk the metallurgical component critical for its complex heavy rare earth project.

The project’s strategy has shifted toward producing separated Light Rare Earth Concentrate (LREC) and Heavy Rare Earth Concentrate (HREC) products, rather than conventional concentrates. This approach enhances the project's strategic value by aligning with Japanese industrial demand, though it also introduces increased technical complexity and execution risk.

The announcement is viewed as incremental, as the market had already priced in the DFS timeline, targeted for Q2 2027, and the partnership with Toyota Tsusho. The stock has declined approximately 53% from its March 2026 high, suggesting investors view these development steps as routine milestones rather than immediate value inflections. No new financing was announced alongside the DFS approval, highlighting the company's reliance on JOGMEC's earn-in funds and existing cash reserves to advance the study.

Namibia Critical Metals Inc. is a pre-revenue junior explorer focused on the Lofdal Heavy Rare Earths Project in Namibia. The project targets dysprosium (Dy), terbium (Tb), and yttrium (Y), critical for high-performance permanent magnets used in EVs and wind turbines. Lofdal is classified as a Tier 1 heavy rare earth deposit outside of China, fully permitted with a 25-year mining license.

The December 2025 PFS outlined a Base Case NPV of US$389 million (pre-tax) and a Divergent Case NPV of US$1.25 billion, with after-tax payback periods of 4.2 and 2.75 years, respectively. The project aims to produce separated light and heavy rare earth carbonates, moving beyond traditional concentrate sales to capture higher value in the supply chain.