Kendrick Resources PLC (LSE:KEN) has raised £1.76 million through a placing and share subscription programme priced at 7 pence per share.
The fundraising attracted support from company directors, a US-managed investment fund, a US family office and existing shareholders. Including consultant shares and warrants, the transaction will expand Kendrick’s issued share capital to 402,057,620 shares, subject to admission to trading on the London Stock Exchange’s Main Market.
Funding to support Bonya development and strategic expansion
The proceeds will primarily be directed toward advancing the Bonya Rare Earth project in Namibia, where drilling activities are currently progressing with the objective of delivering a maiden JORC-compliant resource estimate by the end of the third quarter of 2026.
Kendrick also plans to use the new capital to support its recently announced strategic development programme and provide additional working capital as the company expands its critical minerals portfolio.
Management noted that participation from directors, the settlement of consultant fees through shares and the placing price being set at a modest premium to the recent market bid price collectively demonstrate internal confidence in the company’s growth plans while strengthening the balance sheet.
Weak financial profile remains a key challenge
Kendrick Resources’ outlook continues to be constrained by weak underlying financial fundamentals, including the absence of revenue, recurring losses, negative cash flow and a significantly weakened balance sheet characterised by negative equity.
However, technical indicators remain notably positive and provide some support for investor sentiment. Valuation metrics are more difficult to assess due to ongoing losses and the lack of dividend payments.
More about Kendrick Resources PLC
Kendrick Resources PLC is a London-listed mineral exploration and development business focused on strategic commodity projects, including rare earth opportunities such as the Bonya project in Namibia. The company operates within the critical minerals sector, targeting resource development opportunities intended to expand its portfolio and support long-term shareholder value creation.
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