Kalamazoo Resources (ASX:KZR) is raising $10 million through a private placement and share purchase plan to fund exploration and a Prefeasibility Study (PFS) at the Mt Olympus deposit within the Ashburton Gold Project in Western Australia.
The company will issue 47.05 million shares at an issue price of $0.17 per share to raise $8 million in the placement, representing a 16.4% discount to the 10-day volume weighted average price of $0.203.
Petra Capital is acting as the lead manager and bookrunner for this placement.
Placement shares are expected to settle on 6 January 2026, before being issued on or around 7 January.
Meanwhile, eligible shareholders will be able to subscribe for up to $30,000 in shares through a share purchase plan to raise the remaining $2 million in this financing offer.
The share purchase plan is expected to close on 23 January before shares are issued on 2 February
Executive Chairman Luke Reinehr says the company is pleased with the support from both new and existing investors for this financing offer.
“Funds raised from the placement and share purchase plan will allow us to continue to advance our resource and exploration drilling campaigns, progress the Mt Olympus PFS along with exploration and working capital,” Reinehr says.
“We look forward to putting investors’ funds to work and continuing to update the market on our progress.”
Kalamazoo is currently conducting a diamond drilling campaign at the Ashburton Project in order to streamline the PFS. The company has appointed Adam Garczynski from Project Delivery International as the Mt Olympus PFS Manager.
“Kalamazoo is pleased to welcome the appointment of Adam Garczynski as the Mt Olympus PFS Manager, whose specialist study expertise is a great boost to ensure the successful delivery of the PFS during 2026,” Reinehr adds.
“Adam will be leading a quality team of key PFS consultants and partners recently appointed which has the PFS scheduled to formally commence in early January 2026.
“In the interim, the completion of the first diamond drill hole below the Mt Olympus pit is an encouraging start for the first phase of the company’s planned drilling programs across the Ashburton Gold Project.
“This initial diamond drilling program reflects Kalamazoo’s high priority strategy to investigate growth opportunities to extend mine life from both open pit and underground resources at Mt Olympus, as well as other additional brownfield resources and greenfield prospects across the broader 380km² Ashburton–Xanadu Project area.”
Kalamazoo Resources is an Australian gold and antimony explorer and developer focused on advancing its portfolio of assets located in Western Australia and Victoria.
Write to Maddison Elliott at Mining.com.au
Images: Kalamazoo Resources
