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LONDON - Kendrick Resources Plc (LSE:KEN) has entered into an option and joint venture agreement for a copper exploration license in northwest Zambia, the company announced Tuesday.
The agreement concerns the Blue Fox License (34412-HQ-LEL), which was previously held by Anglo American (JO:AGLJ) Corporation. The license is located within the External Fold and Thrust Belt between the Western Foreland and Domes domains of northwest Zambia.
According to the company’s press release statement, the license area is situated along strike of the same geological belt that hosts major copper deposits in the Democratic Republic of Congo, including Tenke Fungurume (8Mt contained copper) and Mutanda mines.
Under the agreement 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 30 months.
Following the exploration period, the parties plan to form a joint venture company with Kendrick holding 70% and CCL 30%. If Kendrick funds development through to a mining decision, CCL’s interest would be reduced to a 20% carried interest.
The license, issued in October 2023 and valid until October 2027, covers 68,383 hectares and targets copper, cobalt, and other commodities.
Colin Bird, Executive Chairman of Kendrick Resources, said the company had been seeking copper and base and critical metals project opportunities in Southern Africa, as noted in their 2024 accounts.
The agreement includes provisions for profit sharing and potential future sale or joint venture arrangements with third parties.
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