Namibia Critical Metals announced it has entered into a drawdown equity financing facility with Alumina Partners (Ontario), an affiliate of New York-based private equity firm Alumina Partners, LLC., that is structured to provide Namibia Critical Metals with timely access to private placement financing as and when required.

Under the terms of the Investment Agreement, the Company has the right to draw down on the CD$5,000,000 facility, at its sole discretion, through equity private placement tranches of up to CD$250,000 each. Each tranche will be a placement of units with each Unit comprising one common share and one-half of one common share purchase warrant (each whole common share purchase warrant referred to as a “Warrant”).

The Units will be priced at a discount of 15% to 25% from the then most recent closing price of the Shares on the TSX Venture Exchange at the time of the applicable Company draw-down notice to Alumina. The Warrants will be issued at a 40% premium over the market price of the Shares and will have a term of 24 months. There are no standby charges or other upfront fees associated with the Investment Agreement or any penalties for not drawing the full facility. Each tranche of Units issued under the Investment Agreement will be subject to the acceptance of the TSX Venture Exchange, and the securities issued will be subject to the customary 4-month hold period.

A first tranche draw-down of $100,000 was completed concurrent with the execution of the Investment Agreement. The Company issued 555,555 units (“Units”) at a price of $0.18 per unit for gross proceeds of $100,000.

Each Warrant in this tranche is exercisable into one additional common share at a price of $0.336. The proceeds from the first draw-down will be used to accelerate gold exploration over the 1,638 square kilometer Grootfontein project area. A total of 5,000 samples over many of the principal target areas have already been collected and will now be submitted for gold analyses.

Don Burton, President of Namibia Critical Metals stated: “The Alumina facility will provide the Company with the flexibility to accelerate high priority exploration programs outside of the Lofdal Heavy Rare Earth joint venture which is already fully funded by our joint venture partner, Japan Oil, Gas and Metals National Corporation (JOGMEC). Exploration of our 2,000 square kilometer land package in the emerging Navachab-Otjikoto gold belt of central Namibia can now be accelerated with the objective of identifying gold targets using systematic soil geochemical surveys, in a manner similar to what has been utilized by Osino Resources. This approach led to the discovery of Twin Hills and other important gold anomalies. Management is no stranger to large scale gold exploration, having previously conducted similar programs with Etruscan Resources throughout West Africa from 1996-2010 which led to the development of the Samira Hill, Tabakaroni, Youga and Agbaou gold mines.”

Adi Nahmani, Managing Member of Alumina Partners said: ” Alumina is thrilled to support Namibia Critical Metals as they prepare to dramatically ramp up exploration. The two areas of resource focus that present the greatest value proposition right now are rare earth elements and counter-inflationary precious metals… And investing in Namibia now will allow us to get exposure to both. We look forward very much to seeing this veteran management team execute against plan and hit key milestones even sooner than previously expected.”

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