Core Viewpoint - Kendrick Resources has entered into a definitive agreement to acquire a 70% stake in two exploration licences in Namibia, which are believed to have significant potential for rare earth mining development [1][5]. Financial Terms - Kendrick will pay Bonya Exploration and its shareholder Wilhelm Shali a total of $300,000 in cash and issue 22 million ordinary shares. An additional $500,000 and three million shares will be issued if the licences receive an 18-month extension [2]. - Upon commercial production, Kendrick will initially retain 60% of cash flows until all advanced funds are recovered, with the remaining 40% distributed according to equity interests. A 2% net smelter royalty will also apply [4]. Project Development - Kendrick is responsible for funding the work necessary to advance the project to a preliminary economic feasibility study (PEFS). Following this phase, Bonya plans to establish a special purpose vehicle (SPV) to facilitate project development and secure further funding [3]. - The SPV will be wholly owned by Bonya as part of a joint venture, with both parties entitled to a 30% carried interest concerning exploration and production costs linked to the licences [3]. Technical Aspects - Kendrick's executive chairman highlighted the satisfactory technical due diligence, indicating that the projects have high potential compared to other global rare earth projects. The company will inherit a substantial amount of data, including drill-holes, unassayed core, trenches, geophysics, and basic metallurgical test work [5][6].