Zak Mir talks to Colin Bird, Executive Chairman, Kendrick Resources, as the mineral exploration and development company, announces that it has entered into a binding and exclusive Option Agreement to acquire not less than 70% interest on terms to be agreed with Bonya Exploration Pty Namibia.

Kendrick Resources Plc (LON: KEN) has entered into a binding and exclusive option agreement to acquire a minimum 70% interest in two rare earth exploration licences, EPL4458 and EPL6691, in Namibia. The exclusivity period runs until May 19, 2026.

The licences, located southwest of Aus, have returned encouraging historical results, with peak Total Rare Earth Oxide grades of up to 4.47% and an average grade of 3.12%. Sampling has identified significant concentrations of neodymium, praseodymium and samarium, elements that are critical for the manufacture of high-performance permanent magnets.

Kendrick said it will immediately begin assaying, trenching and drill-target identification as part of its due diligence programme, ahead of a decision on whether to exercise the option to secure the majority interest.

The binding and exclusivity period is valid until 19 May 2026 and can be extended with the consent of Bonya. 

Highlights

·    The licenses are situated 55km southwest of the town of Aus, approximately 65km southeast of the deepwater port of Lüderitz

·    The two license areas are known as Twyfelskupje and Keishohe and are hosted within a Carbonatite and Alkaline intrusive structural corridor

·    The two licenses represent well-defined, high-grade targets located within a larger highly prospective area under license

·    The Twyfelskupje Carbonatite Complex forms a circular group of hills with a diameter of 1km

·    Historical channel sampling and grab sampling returned peak Rare Earth Oxides ("REO") grades of 4.47% and 4.18% with an average REO of 3.12%

·    ICP analysis undertaken in Canada, returned high Rare Earth Elements concentrations, greater than 10,000ppm for a number of elements, including Neodymium, Praseodymium and Samarium, which are all important components of high-performance, high-temperature magnets

·    The Keishohe Carbonatite Complex indicates scope for an additional three satellite near surface occurrences

·    Work will commence immediately on assaying, currently available but unassayed core, further trenching and identification of drilling targets

·    Kendrick will concurrently carry out all necessary legal, financial and regulatory checks before determining whether to exercise the option

Colin Bird, Executive Chairman of Kendrick Resources Plc commented: "Rare Earths are globally accepted as new age strategic materials and these licenses are located in Namibia, a country recognized for its support of the development of natural resource projects. The historical Rare Earth values are higher than those generally reported in the industry and the high values of the magnetic elements are very encouraging since such elements are much sought after.

The licenses have areas which are drill ready and historically been well evaluated with geophysics and exploration fieldwork. 

We intend to accelerate our due diligence and technical preparedness in order to release the high potential of the project area.  We will keep shareholders advised as our evaluation phase develops."