Kendrick Resources has entered into a binding, exclusive option agreement to acquire at least a 70% interest in two rare-earth exploration licences in southern Namibia, giving the company until 19 May to complete technical and commercial due diligence before deciding whether to proceed with a full acquisition.
According to Mining Weekly, the mineral exploration and development company signed the option agreement with Bonya Exploration to assess the prospectivity of rare earth elements on Exclusive Prospecting Licences EPL 4458 and EPL 6691, known as the Twyfelskupje and Keishohe licence areas.
The exclusivity period runs for 120 days and may be extended with Bonya’s consent.
The two licence areas are located about 55 kilometres south-west of Aus and roughly 65 kilometres south-east of the deepwater port of Lüderitz. Mining Weekly reported that both licences fall within a carbonatite and alkaline intrusive structural corridor, a geological setting commonly associated with rare earth mineralisation.
In a statement carried by Mining Weekly on 22 January, Kendrick said the licences host well-defined, high-grade rare-earth targets within a broader prospective zone. At Twyfelskupje, the carbonatite complex forms a circular group of hills with a diameter of approximately one kilometre. Historical channel and grab sampling at the site returned peak rare earth oxide grades of 4.47% and 4.18%, with an average grade of 3.12%.
Mining Weekly further reported that historical laboratory work, including inductively coupled plasma analysis conducted in Canada, returned rare earth element concentrations exceeding 10,000 parts per million for several elements, including neodymium, praseodymium and samarium, which are key inputs in the manufacture of high-performance permanent magnets.
At the Keishohe carbonatite complex, previous exploration identified potential for three additional near-surface satellite occurrences.
According to Mining Weekly, parts of both licence areas are considered drill-ready, having already been assessed through geophysical surveys and field exploration programmes.
Kendrick said work would begin immediately on assaying existing but previously unassayed drill core, alongside further trenching and the identification of priority drilling targets.
The company will also conduct legal, financial and regulatory checks during the option period before making a final decision on whether to exercise the option.
Kendrick executive chairperson Colin Bird told Mining Weekly that the company viewed rare earth elements as strategically essential materials.
“Rare earths are globally accepted as new age strategic materials, and these licences are located in Namibia, a country recognised for its support of the development of natural resource projects,” Bird said.
“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,” he said.
Bird added that prior work on the licences provided a strong foundation for further evaluation.
“The licences have areas which are drill-ready and have 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,” Bird said.
Mining Weekly reported that under the terms of the agreement, Kendrick may exercise the option at any time during the 120 days by giving notice and entering into a definitive agreement to be negotiated with Bonya. If Kendrick elects not to proceed, neither party will have any further obligations to the other.
