Kendrick secures N$15m rare earth deal
Kendrick Resources Plc has exercised its option to acquire a 70% controlling stake in two high-grade rare earth exploration licences near Aus in southern Namibia.
The definitive agreement, valued at up to US$800,000 (approximately N$15 million), follows a preliminary announcement made in January 2026.
The deal covers exploration licences EPL4458 and EPL6691, which are considered highly prospective for rare earth elements (REEs) hosted in carbonatite geology. Kendrick said the decision to proceed followed reconnaissance work by its technical team, which identified strong geological indicators and a significant body of historical data, including existing drill holes, trenching, and geophysical surveys.
Transaction details and board changes
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, along with the issuance of 22 million ordinary shares.
A further US$500,000 (approximately N$9.4 million) and an additional three million shares are payable if the licences are granted an extension of at least 18 months. Kendrick said the consideration shares will be subject to a six-month lock-up period.
As part of the agreement, Namibian businessman Wilhelm Shali is expected to join Kendrick’s board as a non-executive director, subject to regulatory approval. Kendrick said the appointment will strengthen local participation and support the project’s development.
Strategic importance and development path
Kendrick Executive Chairman Colin Bird said the projects compare favourably with rare earth developments worldwide. He said early observations indicate that mineralisation is dominated by magnetic rare earth elements, which are highly sought after for electric vehicles, wind turbines, and defence technologies.
Kendrick said it will fund all work required to advance the project through to a preliminary economic feasibility study. Upon completion of this study, the partners will enter into a joint venture to move the project into development and production.
The agreement includes a 30% carried interest for the local partners on exploration and development expenditures. Upon commercial production, a 2% net smelter royalty will apply. Kendrick said it will retain 60% of project cash flows until all advanced funds are recovered, after which distributions will align with equity interests.
The company said it will apply for the 22 million new shares to be admitted to trading on the London Stock Exchange, with dealings expected to commence on or around 2 March 2026.
