REG - Kendrick Resources - Option & JV for Exploration Licence in Zambia

Kendrick ResourcesAnnouncement

10/06/2025 16:15

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RNS Number : 2642M  Kendrick Resources PLC  10 June 2025

 

10 June 2025

Kendrick Resources PLC

 ("Kendrick" or the "Company")

Option & JV for Exploration Licence in Zambia

 

 Kendrick Resources Plc (LSE: KEN), the mineral exploration and development
company is pleased to announce it has on 10 June 2025 entered into an option
and joint venture agreement in relation to the acquisition of the Blue Fox
Licence, 34412-HQ-LEL located in northwest Zambia ("Licence") (the
"Agreement").

 

Highlights

 

·    The Licence which was previously held by Anglo American Corporation
is located within the highly productive and prospective External Fold and
Thrust Belt which is itself situated between the Western Foreland and Domes
domains of northwest Zambia.

 

·    The Licence is situated along strike of and in the same External Fold
and Thrust Belt that hosts Tenke Fungurume (8Mt contained Cu) and the Mutanda
mines in Democratic Republic of Congo

 

·    The Licence sits adjacent to known copper mineralisation hosted by
Roan Group rocks and associated with salt diapir tectonics and fluidised
breccias.

 

Exploration will target structures occurring within the Licence inferred from
airborne magnetic data together with the presence of two substantial copper in
soil anomalies identified immediately to the east of the Blue Fox Licence that
appear to trend into the Licence.

 

 

Colin Bird, Executive Chairman of Kendrick Resources Plc commented:

"We announced in our 2004 accounts Kendrick has been seeking to identify
copper and base and critical metals project opportunities in Southern Africa.
The Blue Fox Licence is located within the External Fold and Thrust Belt in
northwest Zambia a country well known to the Board and where the Company has
access to a large knowledge base and experienced geological personal. The
licence is highly prospective and the External Fold and Thrust Belt which
extends into the Democratic Republic of Congo hosts the Tenke Fungurume and
Mutanda mines."

 

Terms of the Agreement

Kendrick has entered into an option and joint venture agreement with
Cooperlemon Consultancy Limited ("CCL") for the exploration and if appropriate
development of licence number 34412-HQ-LEL located in the Northwestern region
of Zambia.

 

CCL has granted Kendrick an exclusive option (the "Option") and a 60 day
option period to conduct diligence legal and title due diligence. During the
Option Period Kendrick has the exclusive right by written notice to CCL for
the parties to enter into a joint venture agreement for the exploration and
development of the Licence in accordance with the terms of the Agreement
("Option Notice") .

 

Expenditure Commitment: Should Kendrick issue an Option Notice, Kendrick
agrees to spend not less than USD500,000 during the 30-month period from the
date of the Option Notice on assessing and exploring the Licence area.

 

At the end of the Exploration and Evaluation Period, the parties will assess
and jointly agree the basis upon which they will form a joint venture company
to explore and develop the Licence in the ratio 70% / 30% between Kendrick and
CCL.

 

The JV Company will be responsible for the future financing of the project,
with CCL having no obligation to fund its share of the JV Company costs
through to a decision to mine.

 

Should Kendrick fund or arrange funding for the JV Company until a decision to
mine, then CCL will dilute its interest in the JV Company to a 20% carried
interest.

 

Cashflow distribution: Distribution of surplus cashflows of the JV Company
having provided for ongoing working capital for the continuing development of
a mine will be:

i)     60% retained for debt servicing and repayment of financing provided
to the JV Company; and

ii)    40% to be distributed as per equity ownership to Kendrick and CCL.

 

Approval of and Consequences of JV or Sale

i)     Both parties must agree to the terms of a joint venture with a
third party or sale of the Licence or other corporate transaction affecting
the Licence;

 

ii)    Should the Licence be joint ventured with a third party then the
parties agree that the joint venture participation with the third party will
be divided as to 50% Kendrick and 50% CCL; and

 

iii)   If the project is sold outright to a third party, then CCL and
Kendrick will divide the proceeds from such sale 50% Kendrick and 50% CCL with
the costs of the sale to be deducted.  The costs of sale do not include the
exploration cost incurred by Kendrick, but will include sale related costs
including but not limited to legal and commercial costs.

 

The Agreement is governed by English Law.

 

Further information on the Licence:  The Licence is a large scale exploration
licence issued on 16 October 2023 which expires on 15 October 2027 and has an
area of 68,383 ha and is for copper and cobalt and other commodities.

 

For further information, please contact:

 Kendrick Resources Plc:     Tel: +44 2039 616 086

 Chairman                    Colin Bird
 Novum Securities            Tel: +44 207 399 9400

 Financial Adviser           David Coffman / Anastassiya Eley

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

 Joint Broker                Damon Heath / Isabella Pierre

 

 

 

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