- Kalamazoo (KZR) is set to raise 8 million dollars via the placement of 20 million fully paid ordinary shares
- The raise is split between two investors, Novo Resources and Eric Sprott
- Each investor is set to purchase 10 million shares at 40 cents each
- Novo CEO Dr Quintin Hennigh has now joined Kalamazoo’s Technical advisory committee
- Kalamazoo has dropped slightly after shares skyrocketed 30% following the announcement yesterday. The company is down 6.31 percent selling at 52c a share
Australian metals explorer Kalamazoo Resources (KZR) is ready to raise $8 million via a placement to distribute 20 million fully paid ordinary shares.
The shares sold at 40 cents each will be evenly split between Canadian gold explorer Novo Resources and Canadian billionaire Eric Sprott.
Each new share issued will have an attaching option, exercisable at $0.80 cents within 18 months.
The gold and base metal explorer is focused on identifying commercial mining deposits within its portfolio of projects.
Kalamazoo currently oversees East Coast projects at Castlemaine, South Muckleford and Tarnagulla, in addition to two WA-based plays in Western Australia.
Following the placement, Kalamazoos cash balance now sits at $9 million, in addition to $4 million of receivables over the next 12 months, following the sale of their Snake Well Gold project.
Kalamazoo says it will use the funds to expand exploration and drilling programs at Castlemaine, South Muckleford and Tarnagulla Central Gold Projects in Victoria.
Kalamazoo Chairman and CEO Luke Reinehr says the company is pleased with the investment.
“The investment of $8 million by Novo and Eric Sprott is a terrific endorsement of our Central Victorian Goldfield’s strategy to explore smarter, using new technologies and innovations in a low impact manner,” Luke said.
Luke also commented on the extremely promising results from drill intersections at their Castlemaine Gold Project.
This includes an exceptionally high-grade intersection of 1.42m at 261 grams per tonne from 100.32 meters in drill hole MU19DD04.
“This high-grade intersection supports our exploration strategy to focus on the incredibly rich historical Castlemaine and South Muckleford goldfields in our search for the next major gold deposit in Central Victoria, particularly due to their close proximity and geological similarities to Kirkland Lake’s (ASX: KLA) world class high-grade underground mine at Fosterville 45km north-east,” he told the market.
Novo Resources
Canada-based gold exploration company Novo, is focused on developing gold projects in the Pilbarra Region of Western Australia.
Their land amass covers 12,000 square kilometres and it has a market capitalisation of $600 million.
Novo CEO Dr Quintin Hennigh is described as an internationally renowned economic geologist, with more than 25 years of exploration experience and gold mining expertise.
And Quintin has now joined Kalamazoo’s Technical advisory committee.
“Novo is delighted to acquire a significant stake in Kalamazoo. Many companies are exploring the Victoria goldfields since the success of Fosterville,” Quintin told the market.
“Here at Novo, we quickly recognized the potential of Kalamazoo’s new discovery to be of the same ilk…epizonal orogenic high-grade vein mineralization…as the recent high-grade veins found at Fosterville,” he added.
Quintin also commented on the mineralization, saying these types of systems are extremely rare to find.
“Kalamazoo’s recent results display many of the right geologic indicators of this special type of high-grade deposit, remarkable given these recent results are at such an early stage,” he said.Kalamazoo has dropped slightly after shares skyrocketed 30% following the announcement yesterday. The company is down 6.31 percent selling at 52c a share at 2:00pm AEDT.