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- Kalamazoo Resources (KZR) secures $3 million from a long standing shareholder to fund gold and lithium exploration
- The cornerstone investment by New York based Lind Partners is a staged placement over a maximum 24-month period, comprising 2.1 million shares in KZR and six million options
- The funds will boost the company’s cash balance to $5 million as it looks to advance its gold and lithium projects across WA, Victoria and NSW
- Lind Partners Founder Jeff Easton says after a decade of watching how KZR operates, Lind could “not be more pleased” to increase its commitment at such a pivotal time
- Kalamazoo shares are up 2.22 per cent to trade at 23 cents at 11:26 am AEST
Kalamazoo Resources (KZR) has secured $3 million from a long standing shareholder to fund further gold and lithium exploration.
The cornerstone investment by New York based Lind Partners is a staged placement over a maximum 24-month period, comprising 2.1 million shares in KZR and six million options.
Lind will pre-pay $3 million to Kalamazoo for an investment in shares with a value of $3.1 million, with the proceeds to be provided within five days.
The funds will boost the exploration company’s cash balance to $5 million as it looks to advance its gold and lithium projects across Western Australia, Victoria and New South Wales.
In WA’s Pilbara region, the proceeds will assist KZR in completing a scoping study and progressing phase three exploration and drilling at its Ashburton gold project, while also funding ongoing exploration at its Mallina West gold project.
The fresh capital will also assist with the company’s lithium projects in the Pilbara, in particular its exploration joint venture at the DOM’s Hill and Marble Bar projects, and its wholly-owned Pear Creek project.
In Victoria, the funds will go towards ongoing exploration at Kalamazoo Resources’ 100 per cent owned gold projects that cover 2016 square kilometres at Castlemaine, South Muckleford, Myrtle, Tarnagulla, and Mt Piper.
And in NSW, KZR has set its sights on beginning exploration at its Jingellic lithium project.
Kalamazoo Chairman and CEO Luke Reinehr said the company is extremely pleased with the placement agreement and welcomes Lind’s ongoing support and further investment.
“During 2022, Kalamazoo has taken significant steps in building on and progressing our gold and lithium portfolio in the Pilbara and Victoria,” Mr Reinehr said.
“The funds invested by Lind will further strengthen our balance sheet, so that we can accelerate our exploration and development of these projects,” he added.
Lind Partners Founder Jeff Easton said after a decade of watching how KZR operates, Lind could “not be more pleased” to increase its commitment at such a pivotal time.
“Kalamazoo has demonstrated a strong ability to identify, secure and advance prospective targets, while keeping a keen eye on the bottom line,” Mr Easton said.
“We look forward to the results from the upcoming exploration programs being announced to the market.”
Kalamazoo shares were up 2.22 per cent to trade at 23 cents at 11:26 am AEST.
