HALIFAX, March 28, 2018 /CNW/ - Namibia Rare Earths
Inc. ("Namibia Rare Earths" or the "Company") (TSXV: NRE) today
announced it intends to complete a non-brokered private placement
in the amount of up to $3,000,000
consisting of common shares offered at a price of $0.185 per common share ("Private Placement")
being the closing price of the common shares of the Company on
March 27, 2018. The volume weighted
added trading price of the common shares over the last 10 days was
$0.197. A maximum of 16,216,216
common shares of Namibia Rare Earths will be issued pursuant to the
Private Placement. The Private Placement is subject to the approval
of the TSX Venture Exchange ("TSXV").
The proceeds of the Private Placement will be used primarily to
fund continued exploration on the Kunene Cobalt-Copper Project and
for preliminary evaluations and metallurgical studies of other
projects, as well as to fund working capital and general corporate
purposes. The common shares of the Company issued pursuant to the
Private Placement will be subject to a four-month hold period.
Gecko Namibia (Pty) Ltd. and
Gerald J. McConnell have each
confirmed their intent to participate in the Private Placement up
to the amounts of $1,313,700 and
$407,100 respectively representing
their current pro rata ownerships in the Company of 43.8% and
13.6%. The level of their participation in the Private Placement
may be reduced to accommodate interest from other investors.
Participation by Gecko Namibia (Pty) Ltd. and Gerald J. McConnell in the Private Placement is
expected to be exempt from the formal valuation and shareholder
approval requirements contained in Multilateral Instrument
61-101 Protection of Minority Security Holders in Special
Transactions as the fair market value of their investments
is not expected to exceed 25% of the Company's market
capitalization. No finder's fees are payable in connection with the
Private Placement.
Namibia Rare Earths also announced today that the Board of the
Company has resolved to seek shareholder approval to change the
name of the Company to "Namibia Critical Metals Inc." at its annual
and special meeting to be held on May 24,
2018. The Board believes the new name more accurately
reflects the recently expanded commodity base from solely rare
earths to include a variety of highly critical commodities
including cobalt, copper, zinc, lithium, graphite, tantalum,
niobium, nickel, and gold.
About Namibia Rare Earths Inc.
Namibia Rare Earths Inc. is focused on the accelerated
development of the Lofdal Rare Earths Project and on building a
critical metals portfolio in Namibia. The common shares of Namibia Rare
Earths Inc. trade on the TSXV under the symbol "NRE".
Web site: www.NamibiaRareEarths.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
The foregoing information may contain forward-looking
information relating to the future performance of Namibia Rare
Earths Inc. Forward-looking information, specifically, that
concerning future performance, is subject to certain risks and
uncertainties, and actual results may differ materially. These
risks and uncertainties are detailed from time to time in the
Company's filings with the appropriate securities commissions.
SOURCE Namibia Rare Earths Inc.