Kendrick Resources PLC (LSE:KEN) shares rose 22% to 0.42p after the company announced it had secured an exclusive option to acquire a majority stake in two rare earth element (REE) licences in Namibia.
The agreement, signed with Bonya Exploration, gives Kendrick the right to acquire at least 70% of licences EPL4458 and EPL6691, which cover the Twyfelskupje and Keishohe carbonatite complexes near the port town of Lüderitz.
The exclusivity period runs until 19 May 2026 and can be extended with Bonya’s consent.
The two sites lie within a structurally significant carbonatite and alkaline intrusive corridor. Historical sampling returned rare earth oxide (REO) grades of up to 4.47%, with an average of 3.12%.
Several samples also showed high concentrations of key magnetic elements, including neodymium, praseodymium and samarium; all vital in high-performance magnets used in electric vehicles and wind turbines.
Chairman Colin Bird said Namibia's supportive stance on natural resource development made the opportunity especially attractive. Kendrick will now begin technical assessments, including assaying untested core, trenching, and identifying drill targets, alongside legal and regulatory due diligence.