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Kendrick Resources enters option agreement for Zambian copper licence
LONDON - Kendrick Resources Plc (LSE:KEN) has entered into an option and joint venture agreement for an exploration licence in northwest Zambia, the company announced Tuesday.
The agreement concerns the Blue Fox Licence (34412-HQ-LEL), previously held by Anglo American (JO:AGLJ) Corporation. The licence is located within the External Fold and Thrust Belt between the Western Foreland and Domes domains of northwest Zambia.
According to the company’s statement, the licence area is situated along the same geological belt that hosts major copper deposits in the Democratic Republic of Congo, including Tenke Fungurume with 8 million tonnes of contained copper.
Under the agreement terms with Cooperlemon Consultancy Limited (CCL), Kendrick has a 60-day exclusive option period to conduct due diligence. If Kendrick proceeds, it commits to spending at least $500,000 on exploration over a 30-month period.
Following the exploration phase, the parties would form a joint venture company with a 70/30 ownership split between Kendrick and CCL. The agreement includes provisions for CCL’s interest to potentially dilute to a 20% carried interest if Kendrick funds development through to a mining decision.
The licence covers 68,383 hectares and was issued in October 2023 with an expiration date of October 15, 2027. It permits exploration for copper, cobalt, and other commodities.
Colin Bird, Executive Chairman of Kendrick Resources, stated that the company has been seeking copper and base metals opportunities in Southern Africa, noting that the licence area is "highly prospective" and located in a region that hosts significant mining operations.
The agreement includes provisions for profit sharing and potential future sale arrangements, with both parties required to approve any joint venture with third parties or outright sale of the licence.
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