The funds will also be used for preliminary evaluations and metallurgical studies of other projects and for general working capital.
The placement involved 21.6 million shares at an issue price of C185c per share, with no warrants issued. The company said insiders acquired $2.2 million of the private placement.
Namibia Rare Earths is accelerating the development of the Lofdal rare earths project in Namibia and building a metals portfolio in the country.