Kendrick Resources Secures Option for Exploration Licence in Zambia
Why we think this is good
The RNS announcement from Kendrick Resources PLC is positive overall, as the company has secured an option and joint venture agreement for an exploration licence in Zambia. The licence is located in a highly prospective geological belt and the agreement includes a reasonable expenditure commitment, indicating Kendrick has secured funding for the exploration and evaluation of the asset. While the timeline for the project is still in the early stages, the partnership with Cooperlemon Consultancy Limited provides opportunities for further development. However, the announcement does not meet the criteria for a 'Very Good' rating, as it does not involve a profit upgrade, trading significantly ahead of expectations, or a transformational acquisition.
Key Points
- Kendrick Resources PLC has entered into an option and joint venture agreement for the Blue Fox Licence in northwest Zambia
- The licence is located within the highly prospective External Fold and Thrust Belt, which hosts major copper mines in the region
- Kendrick has a 60-day option period and has committed to spend at least $500,000 over 30 months on exploration and evaluation
- The parties will form a joint venture company to further explore and develop the licence, with Kendrick holding a 70% interest
Summary
Kendrick Resources PLC (LSE: KEN) has entered into an option and joint venture agreement for the acquisition of the Blue Fox Licence, 34412-HQ-LEL located in northwest Zambia. The licence is situated within the highly productive and prospective External Fold and Thrust Belt, which hosts the Tenke Fungurume and Mutanda mines in the Democratic Republic of Congo. Kendrick has a 60-day option period to conduct due diligence, and if exercised, has committed to spend at least $500,000 over 30 months on assessing and exploring the licence area. The parties will then form a joint venture company to further explore and develop the licence, with Kendrick holding a 70% interest.