(Alliance News) - Kendrick Resources PLC on Monday said it signed a share sale and purchase agreement with EMX Royalty Corp to acquire all of EV Metals AB, which owns the Njuggtraskliden and Mjovattnet nickel exploration licences in Sweden.
London-based mineral exploration and development firm Kendrick Resources said it will pay SEK110,780, or GBP8,200, to acquire EV Metals, alongside the issue of 15 million five-year options to acquire Kendrick shares at 1.3 pence per share. This is worth around an additional GBP195,000.
Shares in Kendrick Resources were untraded at 0.78p each in London on Monday late morning. They last traded at 0.71p on Friday afternoon.
Future commitments also include paying an annual advanced royalty of USD30,000 per project to EMX on or before January 13, 2024, increasing by USD5,000 per project annually and ending when commercial production begins.
Kendrick Resources said the two assets host drill-defined magmatic nickel-copper-cobalt-platinum group metal mineralisation along the Swedish "nickel line".
On or before May 13, 2024, Kendrick Resources said it has committed to one thousand meter drilling for each of the Swedish nickel projects and thereafter annually ceasing for a project on the date when a pre-feasibility study for each project is commissioned.
"We are delighted with this acquisition, since there are multi metal occurrences, alongside the nickel, which in its own right is very attractive. Particularly because the bodies are sulphide, which are much sought after," Executive Chair Colin Bird.
"The deposits are well located relative to smelting and end user capacity in northern Europe and as such represent an enticing strategic acquisition. Alongside our vanadium projects in Sweden and our nickel projects in Norway, we are positioning Kendrick to be ready in the rapidly emerging battery and energy storage arena. We look forward to working on these projects from a geologically sound archive and open system."
By Greg Rosenvinge, Alliance News reporter
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Kendrick Resources (KEN)