TIDMKEN
RNS Number : 5809L
Kendrick Resources PLC
16 May 2022
16 May 2022
Kendrick Resources Plc
("Kendrick" or the "Company")
Exercise of option over Norwegian Projects
Kendrick Resources Plc (LSE: KEN), a mineral exploration and
development company with projects in Scandinavia is pleased to
announce that further to its announcement on 6 May 2022, and the
information in its Prospectus dated 28 April 2022, that on 13 May
2022, it exercised its option to conditionally acquire the
Espedalen, Hosanger, and Sigdal nickel-copper-cobalt exploration
projects in Norway (the "Norwegian Projects") (the "Acquisition")
from EMX Scandinavia AB (previously named Eurasian Minerals Sweden
AB) ("EMX") by the issue of 20,226,757 new ordinary shares in the
Company to EMX or its nominee, 50% of these shares shall be subject
to a three-month voluntary escrow and the balance of 50% subject to
a six-month voluntary escrow. Kendrick has also made a payment of
US$81,949 to EMX. This payment was to meet a shortfall of this
amount in the exploration expenditure to be incurred during the
option period.
The Acquisition is conditional upon the Norweg ian Directorate
for Mineral Administration approving the transfer of the licences
to a wholly owned subsidiary of Kendrick. The parties anticipate
that this approval and transfer process will be completed in
approximately four weeks. At the time this process is completed,
the Company will apply for the 20,226,757 new ordinary shares to be
admitted to trading on the Standard Segment of the London Stock
Exchange.
Colin Bird, Executive Chairman of Kendrick Resources Plc,
commented:
"I am pleased that we were able to conclude the Option agreement
and to welcome EMX as a shareholder in the Company. EMX is a
well-known name in the royalty and mining investment business, and
we will be pleased to have EMX join the share register. The
projects in Norway have excellent potential with several of them
containing raw data which is yet to be compiled, analysed, and
potentially generate a mineral resource estimate. This is entirely
a desktop activity and, as such, will not involve expensive
drilling, assays, and associated work. All of our projects are open
ended and therefore have potential to increase the current nickel
resource and we look forward to drilling the most promising
projects at the earliest opportunity."
Project Highlights
-- The Norwegian Projects comprise:
o The Espedalen Project consisting of 16 contiguous exploration
permits covering a combined area of 139.89 km(2) .
o The Sigdal Project consisting of three exploration licences
totalling 30 km(2) .
o The Hosanger Project consisting of a coherent tenure package
of four exploration licences covering 40 km(2) .
-- The Espedalen Project, currently contains the following two nickel deposits:
o Stormyra deposit comprising 1.16Mt @ 1% Ni, 0.42% Cu &
0.04% Co and classified as Inferred in accordance with JORC
(2012)
o Dalen deposit comprising 7.8Mt @ 0.3% Ni, 0.12% Cu & 0.02%
Co and classified as Inferred in accordance with JORC (2012)
-- The Sigdal Project contains a geophysical conductor
associated with historical mine workings, which has only been
tested with two short drill holes, returning gold grades over 10g/t
with encouraging nickel and copper mineralisation including:
o 1.48m @ 0.36% Ni, 0.43% Cu, 10.1g/t Au, & 2.9g/t Ag from
22.6m in hole ER2006-13
-- The Hosanger Project contains the historical Litland nickel
mine which produced 460,000t of nickel ore grading 1.05% Ni, 0.35%
Cu and 0.05% Co from 19151 and which remains open at depth
ultimately producing 4,170 t of contained nickel.
-- Nickel demand is rising due to an increased usage of Li-ion batteries
Future commitments
-- On or before 13 January 2023, the Company has to pay an
annual advanced royalty of US$25,000 per Project to EMX which
increases by US$5,000 annually per Project with effect from 13
January 2024.
-- On or before 27 April 2023, the Company has to issue to EMX
or its nominee the number of shares which is the lower of i) 9.9%
of the Company's then issued share capital and ii) the number of
shares whose value based on the then 5-day VWAP equals 20,000,000
of the shares issued at closing of the acquisition (the
"Established Value") divided by the 5 day VWAP at the date of issue
of these shares.
-- beginning on 13 May 2025 and ceasing on the date upon which
the Company commissions a Pre-Feasibility Study on any one of the
Projects: the Company has committed to one thousand meter drilling
for each Project; and
-- upon attainment of each development milestone ((milestone 1)
being the completion of an economic assessment of mineral potential
and (milestone 2) the completion of a feasibility study), the
Company shall pay EMX the sum of USD$500,000. If milestone 1 is not
met but milestone 2 is met then an aggregate of USD$1,000,000, will
become due
To facilitate the smooth transfer of the Project Licences the
Company has for SEK75,000 (approximately GBP5,700) acquired
Caledonian Minerals AS a Norwegian company established by EMX as a
clean special purpose vehicle on 8 November 2021 which has to date
not carried out any business and has no assets or liabilities.
Caledonian Minerals AB is Norwegian Company wholly owned by Viad
Royalties AB which is itself a wholly owned subsidiary of EMX and
was incorporated as a clean special purpose vehicle on 8 November
2021 and which has to date not carried out any business and has no
assets or liabilities.
Royalty Agreement: The Parties shall at closing of the
Acquisition enter into a royalty agreement under which a 3% net
smelter royalty is payable to EMX on commercial production from any
of the three Norwegian Projects. A 1% interest in this royalty may
be bought back in stages for a total cash consideration of
US$1,000,000 on or before the fifth anniversary of the closing of
the Acquisition.
Further information on the Norwegian projects can be found on
the Company's website at:
https://www.kendrickresources.com/nickel/
This announcement contains information which, prior to its
disclosure, was inside information as stipulated under Regulation
11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310
(as amended).
For additional information please contact:
Kendrick Resources Plc: Tel: +44 203 961 6086
Chairman Colin Bird
Novum Securities Tel: +44 7399 9400
Financial Adviser David Coffman / Lucy Bowden
Joint Broker Jon Bellis
Shard Capital Partners Tel: +44 207 186 9952
LLP Damon Heath / Isabella Pierre
Joint Broker
About Kendrick Resources Plc
Kendrick Resources Plc is a mineral exploration and development
company with projects primarily based across Scandinavia. The
principal of its business is to explore the opportunities within
the natural resources sector with a focus on battery, base, and
precious metals including but not limited to vanadium and nickel.
In doing so, the Company is looking to build a long term energy
metals business in Scandinavia which delivers energy metals to
Europe to help enable its renewable energy transformation by
building a top tier energy metals production business.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DOCAFMATMTIBMLT
(END) Dow Jones Newswires
May 16, 2022 02:02 ET (06:02 GMT)
Kendrick Resources (LSE:KEN)
Historical Stock Chart
From Apr 2024 to May 2024
Kendrick Resources (LSE:KEN)
Historical Stock Chart
From May 2023 to May 2024