- Closes transaction with Gecko Namibia (Pty) Ltd. to acquire
a majority interest in seven projects with concurrent $550,000 private placement
- Diversifies Namibia Rare Earths Inc.'s single commodity
focus from heavy rare earths on the Lofdal project into a broader
portfolio of critical metals crucial for the electric vehicle
industry including cobalt, lithium, graphite, tantalum, niobium,
and gold
- First priority given to cobalt exploration program at Kunene
in northern Namibia
- Shares to recommence trading on the TSXV
HALIFAX, Feb. 21, 2018 /CNW/ - Namibia Rare Earths
Inc. ("Namibia Rare Earths" or the "Company") (TSXV: NRE) today
announced it had completed the acquisition of a portfolio of
critical metal properties (the "Properties") from Gecko Namibia
(Pty) Ltd. ("Gecko Namibia") in consideration for the issuance of
64,000,000 common shares of Namibia Rare Earths ("Property
Acquisition"). The Company also announced that it had closed a
$550,000 private placement ("Private
Placement"). Both of these transactions were announced in the
Company's press release of November 10,
2017. The shares of the Company are expected to recommence
trading on the TSXV today.
This transaction provides Namibia Rare Earths with a highly
prospective, diversified portfolio of critical metals and at the
same time has secured a highly experienced strategic partner. Gecko
Namibia and its subsidiaries are
substantial participants in the Namibian resource sector with a
proven track record in the mining industry. The portfolio of
properties acquired from Gecko Namibia will expand the Company's
commodity base from solely heavy rare earths to a variety of
highly critical commodities including cobalt, copper, zinc,
lithium, graphite, tantalum, niobium, nickel, and gold (Figure
3). Ground holdings in Namibia
will increase from 221 km2 (Lofdal) to over 6,850
km2.
Proceeds from the Private Placement will fund the initial
exploration program on the Kunene Cobalt-Copper Project in northern
Namibia which is contiguous with a
significant new discovery of stratabound cobalt mineralization that
is being drilled off by Celsius Resources (Figure 1). Namibia Rare
Earths' exploration program on its properties will focus on
confirming cobalt mineralization in areas of demonstrated potential
from historic regional soil geochemical surveys to develop drill
targets for subsequent follow-up. The Company has immediate access
to over 12,000 soil samples collected from previous work over 2,142
km2 which will be systematically analysed for cobalt.
Provision has also been made for a rock sampling program on the
Warmbad Lithium Project in southern Namibia.
Kunene Cobalt-Copper Project - Cobalt
Anomalies Already Identified from Regional Soil Geochemistry and
Drill Holes
The Kunene project area is contiguous with ground being actively
explored for cobalt by ASX-listed Celsius Resources (Figure 1). The
recognition of stratabound cobalt mineralization associated with
low grade copper and zinc mineralization in black shales in the
Kunene region by Gecko Exploration has formed the cornerstone of
Celsius Resources' current drilling program at Opuwo. Celsius is
undertaking a 15,000 m drilling
program to develop a JORC compliant mineral resource to support
their stated "Initial Exploration Target of between 33 and 41
million tonnes, grading approximately 0.13% - 0.17% cobalt and
0.45% - 0.65% copper" (Celsius press release dated May 18, 2017)1.
Fieldwork at Kunene will comprise focused geological mapping,
rock sampling and detailed soil sampling over areas already
identified with cobalt potential from historic work (Figure 1). The
historic database was collected during a previous exploration
period with First Quantum Minerals which was focused on the
discovery of large-scale, orogenic copper deposits and failed to
undertake systematic analyses for cobalt in associated black
shales.
First Targets on Kunene
The regional soil database covered the entire area of interest
(2,142 km2) but at a very wide sampling grid with ICP
analysis at 1 km line spacing and 1 km sampling intervals. This
sampling density has identified significant, large scale
geochemical anomalies but more detailed sampling is required to
determine the source and to define drill targets. Additional soil
sampling was carried out on the regional grid with every second
line sampled at 100 m intervals but
analyses were performed with handheld XRFs which did not collect
reliable data on cobalt. This archive of over 12,000 soil samples
will be utilized for selected ICP analyses for cobalt and other
pathfinder elements to define specific targets within the regional
anomalies. NRE has already submitted 3,850 of these archived
samples for cobalt analysis and allowance has been made for the
collection of an additional 500 infill soil samples over selected
drill target areas.
- DOF Extension and Western Targets - Cobalt
mineralization on the Celsius ground is hosted by the Dolostone Ore
Formation ("DOF") which has been mapped over a strike length of
more than 30 km up to the boundary of EPL4347 which is held by NRE.
One of the priority targets for NRE is the potential extension of
this horizon for an additional 40 km to the west across EPL4347 and
EPL3825. The target area on EPL4347 is completely covered by
alluvium and the extension is inferred from the airborne magnetic
and hyperspectral surveys. The DOF horizon is well defined from
drilling by Celsius and ranges from 3-10
m in thickness making it a difficult target to see on the
wide-spaced regional geochemical sampling grid. There are also
large-scale cobalt anomalies of 2-6 km in basement rocks on NRE's
ground immediately south of the interpreted extension of the DOF
(Western Targets, Figure 1).
- Steilrand and Okanihova Lineaments - First
Quantum Minerals focused their exploration efforts on orogenic
copper mineralisation south of the DOF Horizon. The central part of
EPL 4347 is characterized by extensive hydrothermal alteration
known as the Steilrand-Okanihova hydrothermal system where orogenic
copper mineralisation occurs along major faults. Black shale
horizons within this area are similar to the DOF but were never
systematically analysed for cobalt unless there was significant
visible copper mineralization.
Re-analysis of 37 archived samples has confirmed DOF style
mineralization in one of the reverse circulation ("RC") holes along
the Okanihova lineament. Borehole KHRC04 (Figure 1) showed
increasing cobalt values up to 700 ppm Co with potassium depletion
(indicating hydrothermal alteration) in black shales over 5 meters
at the bottom of the hole. Anomalous zones of cobalt mineralization
(120-450 ppm Co) were also confirmed in a second hole (KHRC08)
drilled 8 km northeast of KHRC04.
Gecko has made provision for availability of a diamond drill rig to
test the up-dip extension of the anomalous cobalt and copper
intercepts in KHRC04 to provide geological and structural
information on the nature of the mineralization. Geological mapping
and rock sampling along these structures will be undertaken, and
archived soil samples have been submitted for cobalt analysis from
this area.
Warmbad Lithium Project - New Pegmatite
Occurrences Mapped near Tantalite Valley Mine
The Warmbad project comprises 605 km2 (EPL6439) and
hosts numerous pegmatite occurrences with documented Li, Ta, Nb, Be
and REE mineralization (Figure 2). Pegmatites in the Tantalite
Valley District have been mined since about 1946 for beryl,
columbite-tantalite, lithium and bismuth minerals. Mineralization
from historic records of pegmatite occurrences in the area are
reported as lepidolite, spodumene, amblygonite, rubellite and
tantalite.
The area has recently been mapped in detail by the Geological
Survey of Namibia and the Council
of Geosciences (South Africa)
which has provided significantly updated geological information. A
key result of the government mapping campaign is the delineation of
previously unknown extensive pegmatite swarms of up to 13 km strike
length. None of these pegmatites have ever been sampled and have
obvious potential for Li, Ta and REE mineralization given their
proximity to documented mineral occurrences of the Geological
Survey of Namibia. NRE field teams
will be assisted by geologists from the Geological Survey of
Namibia to locate outcrops and
undertake reconnaissance sampling. Detailed follow-up of
mineralized areas will identify drill targets for lithium, tantalum
and/or rare earths as applicable.
Property Acquisition and Private Placement
Namibia Rare Earths has acquired Gecko Namibia's 95% interest in
a portfolio of exploration properties consisting of 14 exploration
prospecting licences ("EPLs") four of which are pending, one
mineral deposit retention licence ("MDRL") and Gecko Namibia's
rights under an option agreement to acquire a 60% interest in a
further exploration prospecting licence which interest may, subject
to the terms of the option agreement, be increased to 80%.
One of the fundamental strategic advantages in the partnership
with Gecko Namibia is the flexibility the diversified portfolio
provides in making targeted investments based on commodity market
conditions. Each project brings a focused value proposition and can
be advanced in a strategic manner based on available resources,
investor interest and merit. A balanced approach can be taken to
levels of investment in early stage versus advanced metallurgical
studies and economic assessment as warranted. The immediate focus
will be on the cobalt opportunity within the project portfolio.
In conjunction with the Property Acquisition, Gecko Namibia and
Gerald J. McConnell, Chair of the
Board of Namibia Rare Earths, have each completed a private
placement with the Company in the amount of $275,000 at $0.05
per share for total gross proceeds to the Company of $550,000 ("Private Placement"). A total of
11,000,000 common shares of Namibia Rare Earths were issued
pursuant to the Private Placement. The common shares of the Company
issued pursuant to the Private Placement are subject to a
four-month hold period expiring June 22,
2018.
Upon completing the Property Acquisition and Private Placement,
Gecko Namibia now owns 69,500,000 common shares representing 43.80%
of the outstanding common shares of the Company.
Namibia Rare Earths and its insiders are at arm's length with
Gecko Namibia and there were no finder's fees payable in connection
with the Property Acquisition or the Private Placement.
Following the closing of the Acquisition, Glenn Williams and Doug
Jackson resigned as members of the Board of Namibia Rare
Earths and Pine van Wyk and Steve
Kapp were appointed to the five-member board with
Gerald McConnell remaining as Chair.
Pine van Wyk was also appointed Chief Executive Officer of Namibia
Rare Earths based in Namibia and
Donald Burton remains as
President.
Donald M. Burton, P.Geo. and
President of Namibia Rare Earths Inc., is the Company's Qualified
Person and has reviewed and approved this press release.
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 TSX Venture Exchange 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.
|
|
1 It is
noted that the potential quantity and grade is conceptual in
nature, and that there has been insufficient exploration to
estimate a Mineral Resource, and it is uncertain if further
exploration will result in the estimation of a Mineral
Resource.
|
SOURCE Namibia Rare Earths Inc.