Kendrick Resources (LSE:KEN) has secured £1 million in gross proceeds through a £250,000 placing led by Shard Capital Partners alongside £750,000 in direct share subscriptions. The company issued 38,461,537 new ordinary shares at 2.6 pence each, representing an 11.9% discount to the previous closing price.
The capital raised will primarily support drilling and further development at the Bonya rare earth project in Namibia, while also strengthening the company’s general working capital position. Following the issuance, the new shares represent approximately 10.3% of the company’s enlarged share capital, bringing total voting rights to 373,367,812.
Executive chairman Colin Bird participated in the fundraising, and a person closely associated with director Martyn Churchouse also subscribed, with the pair contributing a combined £85,000. As a result, the transaction qualifies as a related-party deal, though independent directors concluded that the terms were fair and reasonable for shareholders. In addition, a consultant will receive 576,923 shares to settle £15,000 in outstanding fees.
The company expects the newly issued fundraising and consultant shares to be admitted to the Official List and begin trading on the London Stock Exchange’s main market on 7 April 2026. While the issuance slightly dilutes existing shareholders, it provides additional capital to advance Kendrick’s rare earth exploration strategy.
From an outlook perspective, the company continues to face pressure from weak financial fundamentals, including a lack of revenue, persistent losses, negative cash flow, and a significant reduction in equity and asset levels during 2024. However, technical indicators offer some support, with the share price trending above key moving averages and a positive MACD signal, though momentum indicators suggest the stock may be approaching overbought territory. Valuation metrics remain constrained due to negative earnings and the absence of dividend support.
More about Kendrick Resources PLC
Kendrick Resources Plc is a London-listed exploration and development company focused on advancing mineral resource projects. Its portfolio includes the Bonya rare earth project in Namibia, and the company targets critical minerals that are increasingly important to the global energy transition and technology supply chains.
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