REG - Kendrick Resources - Agreement for Rare Earth licenses in Namibia

Kendrick ResourcesAnnouncement

23/02/2026 11:15

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RNS Number : 0309U  Kendrick Resources PLC  23 February 2026

 

23 February 2026

 

Kendrick Resources PLC

("Kendrick" or the "Company")

Agreement for Rare Earth licenses in Namibia

 

Kendrick Resources Plc (LSE: KEN), the mineral exploration and development
company, further to its announcement on 21 January 2026 is pleased to announce
that it has exercised its option and entered into a definitive agreement with
Bonya Exploration Pty Namibia ("Bonya") which owns Namibia exploration
licences EPL4458 and EPL 6691 (the "Licences") and Bonya's shareholder (the
"Agreement") under which Kendrick will hold a 70% interest in the Licences
which have prospectivity for the development of  a Rare Earth mining project
(the "Project").

 

Highlights

·    The Agreement has been entered into based on reconnaissance and
evaluation work undertaken by the Kendrick Team in relation to the Licences.

·    Discussions are underway with Bonya to agree the most effective and
quickest means of evaluating and developing the rare earth carbonatites on
licences EPL4458 and EPL 6691.

 

Colin Bird, Executive Chairman of Kendrick Resources Plc commented:

" We are pleased to announce that we have exercised our option on the two rare
earth licences close to Luederitz in Namibia. Our technical due diligence has
been most satisfactory demonstrating that the projects have very high
potential relative to other global rare earth projects. We are particularly
pleased with the huge amount of data that we will inherit including actual
drill holes, unassayed core, numerous trenches and geophysics together with
basic metallurgical test work.

 

We are wasting no time in commencing our drill programme conducting further
metallurgical test work and progressing the project with a fast-track
approach.

 

Initial observations and results suggest that the concentration of elements
are in the magnetic properties grouping. They are used to manufacture powerful
permanent magnets found in electric vehicles, wind turbines and smartphones.
Due to their unique magnetic and electronic properties they play a critical
role in renewable energy systems and advanced defence technologies.
 Essentially we are entering into a potentially high grade, high tonnage,
much sought after rare earth arena which may well be one of the major
undeveloped projects on the planet.

 

Last but not least subject to the usual regulatory processes the Board look
forward to Wilhelm Shali joining the Kendrick Board as a non - executive
director and his contribution to the development of Kendrick."

 

Key conditions of the Agreement

 

Kendrick has entered  into the Agreement with  Bonya and Wilhelm Shali
(together the "Partners").

 

The consideration payable is i) USD300,000 cash consideration and ii) the
issue of 22,000,000 ordinary shares in Kendrick (the "Consideration Shares")
which are subject to the lock in and orderly market conditions detailed below.
 Further consideration of USD500,000 and a further 3,000,000 Consideration
Shares will be payable when the Licences have been granted an extension of at
least 18 months.

 

Wilhelm Shali, a Namibian business man, with extensive experience in
exploration, mining, property and agriculture shall, subject to completion of
the requisite regulatory checks be appointed as a non-executive director of
Kendrick Resources Plc.

 

Kendrick shall undertake and fund all work reasonably required to advance the
Project to preliminary economic feasibility study ("PEFS"). Upon completion of
the PEFS (or earlier by mutual agreement) Bonya will form a special purpose
vehicle (SPV) to be 100% owned by Bonya and the parties will enter into a
joint venture and shareholders agreement.  The SPV will be responsible for
developing the Project and raising the funds to take the project from PEFS
into production.

 

The Partners have a 30% carried interest in relation to exploration,
development and production expenditure incurred in respect of the Licences.

 

On commercial production a 2% net smelter royalty shall be payable and 60% of
cashflows will be retained by Kendrick until it has fully recovered and funds
it has advanced with the balance of 40% distributed in accordance with the
parties equity interests.

 

If there is a sale of the Licences / Project and / or any Bonya shares that
cede ownership of Bonya or its assets then Kendrick shall be entitled to 50%
of the proceeds.

 

The Consideration Shares shall, unless agreed to in writing by Kendrick,  be
subject to a six month lock up and thereafter six months orderly market
conditions under which Kendrick would have 30 days to arrange a sale of the
Consideration Shares and only up to 50% of the Consideration Shares can be
sold in any one transaction.

 

The Agreement is under English law.

 

Application will be made to the Financial Conduct Authority and the London
Stock Exchange for the 22,000,000 new Ordinary Shares, to be admitted to the
Official List and to trading on the London Stock Exchange's main market for
listed securities (the "Admission"). It is expected that Admission will become
effective and that dealings will commence at 8.00 a.m. on or around 2 March
2026.

 

Following the issue of the 22,000,000 new Ordinary Shares, the Company's total
issued share capital will consist of 315,248,152 Ordinary Shares with voting
rights. The Company does not hold any Ordinary Shares in treasury and
accordingly there are no voting rights in respect of any treasury shares.

 

On Admission, the above mentioned figure of 315,248,152 Ordinary Shares may be
used by shareholders in the Company as the denominator for the calculations by
which they will determine if they are required to notify their interest in, or
a change to their interest in, Kendrick under the Financial Conduct
Authority's Disclosure Guidance and Transparency Rules.

 

 

For further information, please contact:

 Kendrick Resources Plc: Chairman     Tel: +44 2039 616 086

                                      Colin Bird
 AlbR Capital Limited                 Tel: +44 207 469 0930

 Financial Adviser and Joint Broker   David Coffman / Dan Harris

                                      Jon Bellis
 Shard Capital Partners LLP           Tel: +44 207 186 9952

 Joint Broker                         Damon Heath / Isabella Pierre

 

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