Kendrick Resources Plc has exercised an option announced in January to enter into a definitive agreement valued at up to US$800,000 (about N$15 million), securing a controlling stake in two rare-earth exploration licences near Lüderitz in southern Namibia.
The agreement, first outlined on 21 January 2026, gives Kendrick a 70% interest in exploration licences EPL4458 and EPL6691, which are considered prospective for the development of a rare earth mining project hosted in carbonatite geology.
The licences are located in a region that has seen limited modern rare-earth exploration, despite Namibia’s growing profile as a stable, mining-friendly jurisdiction for critical minerals.
Kendrick is a London-listed mineral exploration and development company focused on early-stage projects with strategic relevance to the global energy transition and advanced manufacturing.
The company has increasingly aligned its portfolio with critical minerals, particularly rare-earth elements used in permanent magnets for electric vehicles, wind turbines, consumer electronics, and defence technologies.
Namibia’s regulatory stability and track record in large-scale mining underpin Kendrick’s decision to advance the project.
The decision to exercise the option followed reconnaissance and evaluation work undertaken by Kendrick’s technical team, which identified strong geological indicators and a substantial body of historical exploration data.
That dataset includes existing drill holes, unassayed core, trenching, geophysical surveys and preliminary metallurgical test work, allowing Kendrick to fast-track drilling and further technical studies.
Kendrick executive chairman Colin Bird said the company’s technical due diligence demonstrated that the projects compared favourably with rare-earth developments worldwide.
He said early observations indicate that mineralisation is dominated by magnetic rare-earth elements, which are among the most commercially sought after within the rare-earth suite.
Under the terms of the agreement, Kendrick will pay US$300,000 (about N$5.6 million) in cash to Bonya Exploration Pty Namibia and its shareholder Wilhelm Shali, and issue 22 million ordinary shares in Kendrick.
A further US$500,000 (about N$9.4 million) and an additional three million shares will become payable if the licences are granted an extension of at least 18 months. The consideration shares will be subject to a six-month lock-up, followed by six months of orderly market conditions.
Shali, a Namibian businessman with experience in exploration, mining, property and agriculture, is expected to join Kendrick’s board as a non-executive director, subject to regulatory approvals.
Kendrick said the appointment would strengthen local participation and support the project’s development.
Kendrick will fund and undertake all work required to advance the project through to a preliminary economic feasibility study.
Upon completion of the study, or earlier by mutual agreement, Bonya will establish a special-purpose vehicle to be wholly owned by Bonya, with the parties entering into a joint venture and shareholders’ agreement to take the project from feasibility into development and production.
The partners will benefit from a 30% carried interest on exploration, development, and production expenditures linked to the licences.
Upon commercial production, a 2% net smelter royalty will apply. In comparison, Kendrick will retain 60% of project cash flows until it has recovered all funds advanced, with the balance distributed in line with equity interests.
In the event of a sale involving the licences, the project or Bonya’s assets, Kendrick will be entitled to 50% of the proceeds.
The agreement is governed by English law.
Kendrick said it will apply to the Financial Conduct Authority and the London Stock Exchange for the admission of the 22 million new ordinary shares to trading, with dealings expected to commence on or around 2 March 2026.
Following admission, Kendrick’s issued share capital will total 315,248,152 ordinary shares with voting rights.
