Kalamazoo Resources (ASX: KZR) has accepted a $3 million cornerstone investment by New York-based Lind Global Fund II, LP, an entity managed by The Lind Partners.
The company reports the $3 million investment by Lind is via a placement of ordinary fully paid shares and 6 million unlisted options.
The funding commitment will be provided within 5 days with the proceeds to be used, along with Kalamazoo’s current cash, to advance the company’s projects gold and lithium projects.
Lind invests in small and mid-cap mining and resource companies publicly traded in the US, Canada, Australia, and the UK.
Commenting on the deal, Kalamazoo Chairman and CEO Luke Reinehr said: “We are extremely pleased to have entered into this Placement Agreement with Lind.
During 2022, Kalamazoo has taken significant steps in building on and progressing our gold and lithium portfolio in the Pilbara and Victoria.
“The funds invested by Lind will further strengthen our balance sheet”
The funds invested by Lind will further strengthen our balance sheet, so that we can accelerate our exploration and development of these projects. Importantly, the structure of the placement agreement provides us with potential pricing upside.
The relationship with Jeff Easton and Phillip Valliere at Lind goes back to 2013, when Lind first invested at seed level when we were a private company.
We welcome Lind’s ongoing support and further investment as we look to create substantial value for all our shareholders, with our exciting portfolio of gold and lithium projects.”
Lind Partners Founder Jeff Easton also noted: “After nearly a decade of watching Luke Reinehr and the Kalamazoo team operate, we could not be more pleased to increase our commitment at this pivotal time.
Investing alongside Kalamazoo’s founders and senior management and their substantial 34% shareholding in the Company provides us with great confidence that our interests are aligned. Kalamazoo has demonstrated a strong ability to identify, secure and advance prospective targets, while keeping a keen eye on the bottom line.
We look forward to the results from the upcoming exploration programs being announced to the market.”
The capital will help Kalamazoo complete the Scoping Study (scheduled for Q3, 2022) and progress phase three exploration and drilling at the company’s 100% owned Ashburton Gold Project, in the Pilbara, WA. It will also assist the company to continue ongoing exploration at the 100% owned Mallina West Gold Project, Pilbara, WA.
In addition, the company will continue ongoing exploration and drilling at its 100% owned Victorian gold projects covering 2,016km-square at Castlemaine, South Muckleford, Myrtle, Tarnagulla, and Mt Piper.
Meanwhile, the investment will assist with the Company’s exploration joint venture ($12 million sole funded by the major Chilean producer SQM (NYSE: SQM)) at the DOM’s Hill and Marble Bar Lithium Projects in the Pilbara.
It will also accelerate ongoing exploration and drilling at the company’s 100% owned Pear Creek Lithium Project in the Pilbara, and start exploration on the 100% owned Jingellic Lithium Project in New South Wales.
Images: Kalamazoo Resources Limited
