NRE's shares are in a trading halt pending final approval for the acquisition, which is in exchange for 64 million shares or a 43.75% stake in the company.

Proceeds from a concurrent C$500,000 (US$390,000) private placement, to be shared between NRE chairman Gerald McConnell and Gecko Namibia at 5c/share, will mainly be used for an initial focus on advancing the Kunene cobalt-copper project due to investor interest in cobalt and high cobalt prices.

NRE has previously been focused on progressing its Lofdal rare earths project where it has established a resource, completed a preliminary economic assessment and applied for environmental and mining licence approval.

It said the additional projects ranged from exploration to near-term feasibility stage and provided exposure to minerals crucial for the electric vehicle industry including cobalt, lithium, graphite, tantalum, niobium and gold.

"The strategic partnership with Gecko Namibia will allow for fast tracking to mine development as projects mature to feasibility stage," NRE said.

Gecko Namibia is described as a fully integrated exploration and mining company with a workforce of 327.

Under the deal, Gecko Namibia will appoint two members to the five-person NRE board and its managing director Pine van Wyk will be appointed CEO of NRE and remain Namibian-based.

Shares in NRE are down 20% year-to-date and last traded at C4c.