Ragnar Metals (ASX:RAG) has secured approval for its strategic investment in Kaiser Reef (ASX:KAU), with a 16.3% shareholding.
Kaiser Reef’s shareholders voted in favour of a two-tranche placement at a recent extraordinary general meeting, and once settled, Ragnar will become the largest shareholder in the company.
Ragnar, which has a market capitalisation of $9 million, says the placement will be completed tomorrow (18 July).
The company also holds 16.7 million options, exercisable at $0.22 and an expiry date of 31 July 2028. If Ragnar chooses to exercise the options, its shareholding will increase to 22.6%.
Executive Director Eddie King says “we are excited with the early returns of mine development at A1 and the recent upgrades at the Maldon gold processing plant, which we see as a highly strategic asset on the back of a burgeoning gold price environment.”
“Victorian gold projects have enormous potential, and we believe Kaiser Reef is differentiated by having a fully permitted gold plant with processing and tailing storage capacity to increase production.”
Kaiser’s latest initiatives on upgrading its Maldon gold processing plant supports its strategy to increase production and cashflow from its Victorian gold operations, notably the A1 Gold Mine — which Ragnar receives a 1.5% net smelter return royalty for five years starting from 1 July 2025.
Ragnar Metals is focused on developing its portfolio of “highly prospective”, district scale gold, nickel, copper, and lithium projects by using innovative exploration technologies.
Kaiser Reef is a gold producer and explorer focused on its assets within the Lachlan Fold Belt of New South Wales.
Write to Aaliyah Rogan at Mining.com.au
Images: Kaiser Reef
