London-listed Kendrick Resources has exercised a previously announced option and entered into a definitive agreement with Bonya Exploration, which owns Namibia exploration licences EPL4458 and EPL 6691, and Bonya's shareholder, under which Kendrick will hold a 70% interest in the licences which have prospectivity for the development of a rare earth mining project.

The consideration payable is $300 000 and the issue of 22 000 shares.

The agreement has been entered into based on reconnaissance and evaluation work undertaken by the Kendrick team. Discussions are under way with Bonya to agree the most effective and quickest means of evaluating and developing the rare earth carbonatites on licences EPL4458 and EPL 6691.

“We are pleased to announce that we have exercised our option on the two rare earth licences close to Luderitz. 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 testwork,” says executive chairperson Colin Bird.

“We are wasting no time in commencing our drill programme conducting further metallurgical testwork and progressing the project with a fast-track approach,” he adds.

Bird highlights that initial observations and results suggest 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. Owing to their unique magnetic and electronic properties, they play a critical role in renewable-energy systems and advanced defence technologies, he explains.

“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,” Bird avers.

Also, Namibia businessperson Wilhelm Shali will join the board as a nonexecutive director, subject to regulatory processes.