Acquisition of New Nickel – Copper – PGM licences in Sweden

RNS Number : 4291I
Kendrick Resources PLC
07 August 2023

Kendrick Resources Plc
(“Kendrick” or the “Company”)
Acquisition of New Nickel – Copper – PGM licences in Sweden

Kendrick Resources Plc (LSE: KEN), a mineral exploration and development company with vanadium, nickel and copper projects in Scandinavia is pleased to announce the signing of a Share Sale and Purchase Agreement with EMX Royalty Corporation (EMX) to acquire 100% of EV Metals AB a Swedish company that owns the Njuggtraskliden and Mjovattnet exploration licences (the “Swedish Nickel Projects”) hosting drill-defined magmatic nickel-copper-cobalt-platinum group metal mineralisation along the Swedish “Nickel Line”.

Swedish Nickel Projects Highlights

Mjovattnet Licence

·    2 drill-defined zones of mineralisation (Mjovattnet and Brannorna Prospects)

·    15km of prospective strike

·    PGE value historically overlooked

·    Mjovattnet in-house non-JORC compliant drill-defined resource of 0.17Mt @ 1.29% Ni, 0.19% Cu & 0.02% Co

·    Open at depth

·    Peak shallow drill intercepts for the Brannora Prospect include:











BRA-75015 65.80 77.40 11.60 0.82
BRA-07001 59.00 84.73 25.73 0.58
BRA-77024 40.30 68.00 27.70 0.64
BRA-07002 29.30 105.48 76.18 0.60

Njuggtraskliden Licence

·    Historic non-JORC compliant mineral Resource of 0 575 Mt @ 0.71% Ni, 0.26% Cu & 0.04% Co

·    10km of prospective strike

·    Mineralised system remains open at depth

·    Drill-defined nickel sulphide mineralisation developed along more than 10km of strike extent

·    Peak shallow drill intercepts at Njuggtraskliden include:

Hole From
















NJU07001 63.40 87.75 24.35 1.01 0.51 1.08 0.56 0.14
NJU79016 15.90 21.69 5.79 1.06 0.31 0.11 0.11 0.05
NJU79031 66.55 89.56 23.01 1.04 0.60 0.51 0.23 0.02
NJU82003E 156.75 161.62 4.87 0.65 0.31 0.15 0.88
NJU90006 44.00 56.30 12.30 0.90 0.79 0.30 5.34 0.24

·    Swedish Geological Survey report suggests extensions to mineralisation at depth and along strike at all prospects on both licences.

·    Both prospects host significant massive sulphide mineralisation not typical of other nickel deposits in the region indicating scope for further accumulations of locally massive sulphide

·    Located in a nickel-rich district, analogous to the Thompson nickel Belt in Manitoba, Canada

·    100km by sea from Boliden’s Kokkola nickel smelter in Finland


Colin Bird, Executive Chairman of Kendrick Resources Plc commented:”

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.

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”.


Kendrick are acquiring EV Metals AB for SEK110,780 (approx. GBP 8,200) and the issue of 15 Million 5 year options to EMX to acquire ordinary shares in the Company (Kendrick Shares) at 1.3 pence per Kendrick Share (EMX Options) which is at a premium of approximately 67% to Kendrick’s closing share price on 4 August 2023 of 0.7750 pence the last practical date prior to this announcement.  The EMX Options if exercised will allow EMX to increase its Kendrick shareholding.

Future commitments

·    On or before 13 January 2024, the Company has to pay an annual advanced royalty of US$30,000 per project to EMX which increases by US$5,000 annually per Project ceasing upon the Commencement of Commercial Production (“Advance Royalty”).; and

·    On or before 13 May 2024 the Company has committed to one thousand meter drilling for each of the Swedish Nickel Projects and thereafter annually ceasing for a project on the date upon which the Company commissions a Pre-Feasibility Study on the project

Royalty Agreement: The Parties shall at closing of the Acquisition enter into a royalty agreement under which a 3% net smelter royalty is payable to EMX on commercial production from any of the Swedish Projects. A 1% interest in this royalty may be bought back in stages for a total cash consideration of US$1,000,000 on or before the fifth anniversary of the date of the Royalty Agreement.

Exploration and Mining in Sweden

·    Sweden offers a well-established set of mining legislation which was updated in 2014 and encourages the development of new mines.

·    The Country offers low energy costs, a competitive corporate tax rate for mining and a nominal royalty on production.

·    Sweden hosts three world-renowned mining districts in Kiruna, Skelleftea, immediately adjacent to the Mjovattnet and Njuggtraskliden Licences and Bergslagen district.

·    There are 8 active smelters in the region and accessible deep-water terminals for ore shipment.

·    Sweden has a rich mining culture dating back to the 11th Century and as a result a widespread cultural acceptance of mining.

Mjovattnet and Njuggtraskliden Licences

Mjovattnet Mineralisation: The Mjovattnet Licence hosts Syn-deformation or Feeder-style-type nickel copper mineralisation. Graphite inclusions within ultramafic cumulates, low Se/S ratios in sulphides and trace element composition indicate composition of parental magma strongly modified during ascent. Country rock comprises migmatised paragneiss with interbedded graphitic schist. Intrusive breccia, lack of compositional layering, brecciated sulphides as offset orebodies result in a complicated intrusive complex morphology.

Mjovattnet Historic drilling was completed by NSG, Outokumpu, SGU, and Blackstone Resources. Results were reported to the SGU and distributed as a part of their national drill database and is shown in Figure One shows the drill defined mineralisation on the Mjovattnet licence.

Figure One drill defined mineralisation on the Mjovattnet licence

A map of a project Description automatically generated

The translation of Mjovattnet is “mead water” in English, which was one of the first nickel sulfide discoveries made along the Nickel Line. Discovered in 1971, the Mjovattnet nickel sulfide deposit occurs along a structural corridor of similar mineralised bodies, including the Lappvattnet, Brannorna, and Lappbacken zones to the southwest, each of which have drill defined zones of mineralization, with the latter two also lying within the Mjovattnet Licence (Lappvattnet is currently held by a third party).

Mjovattnet drill targets: Two targets identified at Mjovattnet, at Brannorna and Mjovattnet both drill-defined along with boulder occurrences where the source of the mineralised boulders is yet to be discovered. Figure 1: shows the Nickel-mineralisation bearing boulders form boulder trains due to the glacial transport (grey arrows), indicating the location of the potential source of the mineralisation upward of the ice flow direction.

Figure Two: Cross Section through Brannora (Mjovattnet)

A diagram of a graph Description automatically generated with medium confidence

Note: Drill intercepts with (*) have a 0.20% cut-off grade, and intercept without a (*) have a 0.5% cut-off grade. Historic drilling was complete by NSG, Outokumpu, SGU, and Blackstone Resources. Results were reported to the SGU and distributed as a part of their national drill database. EMX has not completed sufficient work to classify the data as compliant with NI 43-101 standards. The data should not be relied on until there are confirmed, however EMX believes them to be reliable and relevant.

Mjovattnet Prospectivity The combination of drill defined nickel sulfide mineralisation, which remains open in multiple directions, and the upside potential near the clusters of mineralised boulders makes the Mjovattnet project particularly attractive for further exploration (See Figure 1: Nickel-mineralisation bearing boulders form boulder trains due to the glacial transport (grey arrows), indicating the location of the potential source of the mineralisation upward of the ice flow direction).

Njuggtraskliden mineralisation: The Njuggtraskliden Licence is described as an open dynamic magmatic wedge-shaped conduit featuring intrusive breccias, multiple magmatic pulses of mafic and ultramafic composition in a gabbro, pyroxenite, peridotite host lithology. Mineralisation is made up of massive and disseminated sulphide mineralisation, veinlets and breccias. As with Mjovattnet, the country rock is composed of migmatised paragneiss.

Njuggtraskliden Historic drilling: Figure Three shows a drill section at the Njuggs Project and the drill intercepts in the highlights above are from the Njuggs project.

Figure Three shows a drill section at the Njuggs Project.

A diagram of drilling process Description automatically generated with medium confidence

Note: Drill section adapted from Blackstone Ventures Feb 29,2008 news release. Note: EMX has not performed sufficient work to verify the published drill data reported on this slide, and these data cannot be verified as being compliant with NI 43-101 standards. These historically reported data should not be relied upon until they can be confirmed. However, the drill-delineated mineralization as reported in various public documents available online and from the SGU (Swedish Geological Survey) is considered relevant.

Njuggtraskliden Prospectivity: The drill defined zones of mineralisation at Njuggtraskliden remain open at depth, and the NSG noted in their summary report that a 10-kilometre corridor of similar boulder clusters with nickel sulfide mineralisation remains to be explored at Njuggtraskliden. These occurrences all lie within the Njuggtraskliden Licence and represent considerable upside exploration potential.

Location: The Swedish Nickel Projects are located in east-central Sweden near Skelleftea, the two licences result from regional nickel exploration undertaken by the Swedish Geological survey and other state-run enterprises. Mjovattnet and Njuggtraskliden became known as the “Nickel Line” and the deposits occur just outside the Skelleftea Mining District, home to Boliden AB’s headquarters and smelting facility. The Mjovattnet and Njuggtraskliden projects are located in northern Sweden, southwest of Skellefteå as shown in Figure Four.

Figure Four: Location Map for the Mjovattnet and Njuggtraskliden Project licences

A map of a gold mine Description automatically generated


Regional nickel exploration became a focus of the Swedish Geological Survey (“SGU”) and other state-run mining concerns in the 1970’s and early 1980’s, leading to the discoveries of EMX’s Mjovattnet and Njuggtraskliden nickel-copper-cobalt-PGE deposits along what became known as the “Nickel Line” in north central Sweden. These deposits and occurrences are located just outside of the Skellefteå Mining District, where Boliden AB has its regional headquarters and operates a smelting facility.

In the past few years, the recent emphasis on conversion to electric vehicles within the European Union and construction of a vehicle battery factory near Skellefteå has resulted in renewed interest in the Nickel Line and its nickel-copper sulfide deposits.

Notes from the Swedish Geological Company (“NSG”) in 1987 state that Mjovattnet has only been partly explored and its depth potential remains unknown. Likewise, several clusters of nickel sulfide bearing boulders lie to the northeast and southeast (the Frangsmyran, Holmsvattnet, Långbacken and Vallen occurrences), the bedrock sources of which have yet to be identified.

The Njuggtraskliden deposit was discovered in the early 1970’s via boulder tracing, which led to the identification of several mineralised outcrops. Multiple drill defined zones of nickel sulfide mineralisation were delineated in the early 1980’s, many of which were recognised as being enriched in PGE’s, but only some of the collected drill core samples were analysed for PGE’s.

Since being drilled by the NSG, a few smaller companies have conducted limited exploration in the area, including twinning of some of the historic drill holes and re-analysing some of the historic drill core for PGE’s. However, little or no systematic exploration has taken place.

Further information on EV Metals AB

EV Metals AB is incorporated in Sweden. For the year ended 31 December 2022 EV Metals AB made an audited profit of SEK343,630 (approx.. GBP25,300) due to a one off intra group charge to the EMX group of SEK646,800 (approx. GBP47.600) and were it not for this one off intra group charge which will not arise in the future it would have made a loss of SEK303,170 (approx. GBP 22,300). In the year ended 31 December 2022 the loss for the year was SEK279,932 (approx. GBP20,600). As at 31 December 2022 EV Metals had net assets of SEK368,630 (approx. GBP27,116) .

Sigdal and Hosanger Norwegian projects

In light of the Company’s exploration commitment in relation to the Swedish Nickel Projects EMX has agreed that in relation to Sigdal and Hosanger in lieu of the existing requirement to drill up to one thousand meters on each project if it incurs Exploration Expenditures of no less than USD $50,000 on each of these projects in 2023 the Company will have met its 2023 expenditure requirements for these two projects. The Company will have until 31 December 2023 to decide whether it continues with these two projects on the terms of the existing agreements with EMX. If the Company fails to incur the required USD $50,000 in Exploration Expenditures on these projects, the shortfall of the exploration expenditures obligation may be satisfied by a payment to the EMX of the shortfall in cash.

These arrangements in relation to the Sigdal and Hosanger projects do not affect the Company’s Espedalen Project, which currently contains the following two nickel deposits:

·      Stormyra deposit comprising 1.16Mt @ 1% Ni, 0.42% Cu & 0.04% Co and classified as Inferred in accordance with JORC (2012)

·      Dalen deposit comprising 7.8Mt @ 0.3% Ni, 0.12% Cu & 0.02% Co and classified as Inferred in accordance with JORC (2012)

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For additional information please contact:

Kendrick Resources Plc:



Tel: +44 2039 616 086

Colin Bird

Novum Securities

Financial Adviser

Joint Broker

Tel: +44 7399 9400

David Coffman / George Duxberry

Jon Bellis


Shard Capital Partners LLP

Joint Broker

Tel: +44 207 186 9952

Damon Heath / Isabella Pierre


Qualified Person The technical information contained in this announcement has been reviewed, verified, and approved by Colin Bird, CC.ENG, FIMMM, South African and UK Certified Mine Manager and Director of Kendrick Resources plc, with more than 40 years’ experience mainly in hard rock mining.

About Kendrick Resources Plc

Kendrick Resources Plc is a mineral exploration and development company with projects primarily based across Scandinavia. The principle of its business is to explore the opportunities within the natural resources sector with a focus on battery, base, and precious metals including but not limited to vanadium, nickel and copper. In doing so, the Company is looking to build a long-term energy metals business in Scandinavia which delivers energy metals to Europe to help enable its renewable energy transformation by building a top tier energy metals production business.


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