Kendrick Resources secures a 70% stake in two rare earth exploration licences in Namibia from Bonya Exploration. The licences, EPL4458 and EPL 6691, show potential for rare earth mining. Kendrick will pay $300,000 and issue 22 million shares to Bonya and Wilhelm Shali. Discussions ongoing for efficient project evaluation.

Wilhelm Shali, a Namibian businessman, will join Kendrick as a non-executive director. Kendricks plans to fund the project’s advancement to a preliminary economic feasibility study. Bonya aims to establish a special purpose vehicle for project development and further funding. Partners entitled to a 30% carried interest in exploration and production costs.

Upon commercial production, Kendrick will retain 60% of cash flows until all advanced funds are recovered. A 2% net smelter royalty will apply, and Kendrick will receive half of any proceeds from a sale involving the licences or Bonya’s assets. Kendrick Resources is optimistic about the high potential of the projects relative to other global rare earth projects.

Read more at Yahoo Finance: Kendrick to secure 70% stake in Namibian licences