Kalamazoo Resources (ASX:KZR) has tapped investors for $1.5 million to fund ongoing exploration efforts across its lithium and gold assets in Australia.
The $23.26 million market capitalisation company will raise the $1.5 million through a share placement under which it plans to issue 11,538,462 ordinary fully paid shares at $0.13 per share. This represents a 7.7% discount to Kalamazoo’s 15-day volume weighted average price (VWAP) and a 13.3% discount to its closing price of $0.15 on Tuesday 25 July 2023.
Commenting on the placement, Kalamazoo Resources Chief Executive Officer (CEO) and Chairman Luke Reinehr says: “We are very pleased with the immediate support we have received from institutional and sophisticated investors from this limited placement.
The equity raise has been undertaken at a very exciting time for Kalamazoo as we progress the IPO of Kali Metals in partnership with Karora Resources. After the completion of the IPO, Kalamazoo will be focused on progressing our Ashburton Gold Project and our very prospective Victorian Gold Projects.”
Kalamazoo says the settlement of the placement will take place on 4 August 2023, with shares issued on 7 August 2023.
Upon completing the placement, Kalamazoo will have a cash balance of about $2.5 million.
The funds raised will be used for further exploration at its Lachlan Fold Belt Lithium projects and advancing the upcoming demerger and Initial Public Offering (IPO) of Kali Metals (ASX:KM1).
In addition, the funds raised will be used to advance exploration programs across Kalamazoo’s Ashburton Gold and Victorian Gold projects.
BW Equities will be facilitating the placement as lead manager.
Kalamazoo Resources is an ASX-listed exploration company with a portfolio of gold and lithium projects in Victoria and the Pilbara region of Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Kalamazoo Resources Ltd