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- Kalamazoo Resources (KZR) sells its 50 per cent stake in the Queens project in Victoria to joint venture partner Novo Resources for $1.5 million
- The sale comprises A$750,000 in cash and A$750,000 in Novo stock
- Kalamazoo says the sale will strengthen its finances and will help fund exploration programs in Victoria
- The transaction is subject to standard regulatory approvals and acceptance from the TSX for the scrip portion of the deal
- KZR shares are down 11.8 per cent, trading at 15 cents at 3:03 pm AEDT
Gold explorer Kalamazoo Resources (KZR) has sold its 50 per cent stake in the Queens project to Canadian explorer and joint venture partner Novo Resources for $1.5 million.
The sale comprised A$750,000 in cash and A$750,000 in Novo stock.
The Queens project lies in an area with a known gold endowment, and it surrounds the Malmsbury gold project, which is also being explored by Novo and GBM Resources.
Queens is considered to be highly prospective for high-grade Fosterville-style mineralisation.
Kalamazoo’s Chairman and CEO, Luke Reinehr, said this was the “right strategic move” for the company.
“As Novo already has a similar arrangement on the ground adjacent to the Queens project with GBM, there are obvious synergies for Novo to consolidate its exploration activities in this highly prospective region.”
The sale strengthens Kalamazoo’s treasury and assists the company in delivering its planned exploration and drilling programs in Victoria, including the Castlemaine, South Muckleford and Tarnagulla gold projects.
Kalamazoo has recently acquired the highly prospective Mt Piper gold project, which expands its exploration tenure in Central Victoria to over 1900 square kilometres.
The transaction is subject to standard regulatory approvals and acceptance from the TSX for the scrip portion of the deal.
In September 2020, Kalamazoo granted Novo an option to earn an initial 50 per cent stake in the Queens Project, which Novo exercised in March 2021 by issuing A$2 million in Novo common shares to Kalamazoo.
KZR shares were down 11.8 per cent and trading at 15 cents at 3:03 pm AEDT.
