What's Happening?
Kendrick Resources has signed an agreement with Bonya Exploration to acquire a 70% stake in two exploration licences in Namibia, EPL4458 and EPL 6691, which hold potential for rare earth mining development. The agreement involves Kendrick paying $300,000
in cash and issuing 22 million ordinary shares, with additional payments contingent on licence extensions. Kendrick plans to fund the project to a preliminary economic feasibility study, with Bonya establishing a special purpose vehicle for further development. This collaboration aims to efficiently evaluate and develop the rare earth carbonatites within the licences.
Why It's Important?
The acquisition of these licences positions Kendrick Resources to capitalize on the growing demand for rare earth elements, which are critical for various high-tech and green technologies. By securing a significant stake in these Namibian licences, Kendrick can potentially contribute to diversifying the global supply of rare earths, reducing dependency on dominant players like China. This move also highlights the strategic importance of rare earths in the global economy and the ongoing efforts by companies to secure access to these vital resources.
