The MoU is in line with the government of Namibia’s initiative to utilize Epangelo as the private corporate vehicle to develop a mining regime in the nation.

Under the terms of the MoU, Epangelo will assist NRE in securing an exclusive prospecting license to explore any nuclear fuels discoveries identified on its Lofdal rare earth project (exclusive prospecting license 3400).

Both the companies will co-ordinate to secure a new nuclear fuels mining license, if any economically recoverable nuclear fuels resource is identified on project.

The mining license is to be held by a newly formed mining company, in which NRE will have 90% stake and the remaining will be held by Epangelo.

Once commercial production begins, Epangelo will also have an option to increase its stake by another 10%, by paying 10% of all costs associated with exploration and development of the nuclear fuels deposit.

All costs will be funded by the parties based on their percentage ownership of the mining company, after commencement of commercial production.

NRE CEO Gerald McConnell said the company is the first private sector company to enter into an agreement with Epangelo.