NCMI has reached an agreement with Sylla Gold for the sale of four non-core gold properties in Namibia.

The agreement will see Sylla Gold acquiring NCMI’s 95% stake in its Namibian subsidiaries, which hold the Grootfontein, Erongo, Otjiwarongo and Kaoko licences.

Sylla Gold will issue three million common shares to NCMI at $0.05 each and make a cash payment of $100,000 (C$135,780) as a deal consideration.

The completion of the deal is contingent upon several conditions, including regulatory and TSX Venture Exchange clearances.

NCMI now seeks to focus resources on the Lofdal Heavy Rare Earth Project, targeting a pre-feasibility study in H2 2024.

The Lofdal Project benefits from a 25-year mining licence and is part of a joint venture with the Japan Organization for Metals and Energy Security (JOGMEC).

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JOGMEC, an independent administrative agency of the Japanese Government, aims to ensure Japan’s stable supply of necessary resources.

The partnership with JOGMEC, established on 27 January 2020, allows the agency to earn a 50% interest in the Lofdal project by funding $20m in exploration and development expenditures.

NCMI holds a 95% interest in the Lofdal project, with the remaining 5% reserved for historically disadvantaged Namibians.

The joint venture agreement with JOGMEC outlines a structured investment plan, with JOGMEC committing C$3m in Term 1 and C$7m in Term 2 to acquire a 40% interest in the project.

An additional C$10m investment in Term 3 will increase JOGMEC’s stake by another 10%.

Furthermore, JOGMEC has the option to purchase an extra 1% interest for C$5m and holds the first right of refusal to fund the project through to commercial production, as well as to purchase all production at market prices.

The agreement ensures that the combined interests of NCMI and historically disadvantaged Namibians will not fall below a 26% carried working interest, with a C$5m payment to JOGMEC safeguarding against dilution.