Kendrick to secure 70% stake in Namibian licences

Kendrick Resources has signed a definitive statement with Bonya Exploration for a 70% involvement successful 2 exploration licences successful Namibia.

These licences, EPL4458 and EPL 6691, clasp imaginable for the improvement of a uncommon world mining project.

The collaboration stems from reconnaissance and valuation efforts by Kendrick's team.

Discussions are ongoing with Bonya to find the astir businesslike strategies for evaluating and processing the uncommon world carbonatites wrong the licences.

Under the presumption of the agreement, Kendrick volition wage Bonya and its shareholder, Wilhelm Shali, $300,000 (£222,344) successful currency and contented 22 cardinal mean shares.

An further $500,000 and 3 cardinal shares volition beryllium issued if the licences person an 18-month extension.

Shali, a Namibian businessman with a inheritance successful exploration and mining, volition articulation Kendrick arsenic a non-executive manager upon completion of regulatory checks.

Kendrick is acceptable to money enactment needed to beforehand the task to a preliminary economical feasibility survey (PEFS).

After this phase, Bonya plans to found a peculiar intent conveyance (SPV) to thrust task improvement and unafraid further funding.

The SPV volition beryllium wholly owned by Bonya arsenic portion of a associated task betwixt the parties.

The partners are entitled to a 30% carried involvement concerning exploration and accumulation costs linked to the licences.

Upon commercialized production, Kendrick volition initially clasp 60% of currency flows until each precocious funds are recovered, with the remaining 40% distributed according to equity interests.

A 2% nett smelter royalty volition besides beryllium applicable. In the lawsuit of a merchantability involving the licences oregon Bonya's assets, Kendrick volition person fractional of immoderate proceeds.

Kendrick Resources enforcement president Colin Bird said: “We are pleased to denote that we person exercised our enactment connected the 2 uncommon world licences adjacent to Luederitz successful Namibia. Our method owed diligence has been astir satisfactory, demonstrating that the projects person precise precocious imaginable comparative to different planetary uncommon world projects.

“We are peculiarly pleased with the immense magnitude of information that we volition inherit including existent drill-holes, unassayed core, galore trenches and geophysics, unneurotic with basal metallurgical trial work.”

"Kendrick to unafraid 70% involvement successful Namibian licences" was primitively created and published by Mining Technology, a GlobalData owned brand.

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