Kalamazoo Resources (ASX:KZR) has secured $10 million through a strategic placement to two cornerstone investors at a 29% premium to its last closing price.
The company has received binding commitments to place 55,555,554 new shares at $0.18 each. The issue price represents a 29% premium to the closing price on 5 October, a 27% premium to the 15-day volume weighted average price (VWAP), and a 22% premium to the 30-day VWAP.
Muqasab SPV Holdings, an Abu Dhabi Global Market company backed by a Saudi-led group of Gulf and international private investors, will invest $7.84 million for a 9.9% strategic shareholding on completion. This marks the group’s first investment in the gold sector.
Existing cornerstone shareholder YT International will invest a further $2.16 million, lifting its holding from about 6.6% to 8.5%.
Kalamazoo Executive Chairman Luke Reinehr says the placement is a “landmark investment” for the company.
“Securing $10 million from two cornerstone investors at a substantial premium is a strong endorsement of the quality of our asset base, our recent drilling success, and the development pathway emerging at Ashburton,” Reinehr notes.
The raise follows Kalamazoo’s 2026 drilling program at Mt Olympus and strengthens the balance sheet as the company advances the 1.44-million-ounce Ashburton Gold Project in Western Australia’s Pilbara region towards development.
Muqasab Director Peter Judge says the group was drawn to the Kalamazoo team and the quality of the Ashburton assets — particularly recent results at Mt Olympus.
“We look forward to supporting the company as a long-term shareholder,” Judge adds.
Proceeds will primarily fund resource-growth drilling and completion of the Ashburton Prefeasibility Study. They will also support early Feasibility Study activities and accelerated evaluation of the Xanadu Gold Project as a potential second Ashburton development opportunity.
The placement uses the company’s capacity under ASX Listing Rules 7.1 and 7.1A. YT International’s shares will settle on or around 12 October 2026, with Muqasab’s subscription expected to settle on or before 3 November 2026. Allotment of Muqasab’s shares will follow on or before 5 November 2026.
The placement was sourced directly through Kalamazoo’s investor network, with no brokerage or placement fees payable.
Kalamazoo Resources is an Australian explorer and developer advancing gold and base metal projects across Western Australia and Victoria.
Write to JC Villarba at Mining.com.au
Images: Kalamazoo Resources
