Kalamazoo Resources to use $3m Lind Partners investment to fast-track exploration across gold-lithium portfolio
The Lind Partners is one of Kalamazoo Resources’ original and long-standing shareholders.
New York-based The Lind Partners has made a $3 million investment commitment in Kalamazoo Resources (ASX: KZR), with the funds to be used to fast-track exploration across its gold and lithium assets.
Lind is one of Kalamazoo’s original and long-standing shareholders.
Commenting on the deal, Kalamazoo chairman and chief executive officer Luke Reinehr said the company was “extremely pleased” to secure the placement agreement with Lind.
“During 2022, Kalamazoo has taken significant steps in building and progressing our gold and lithium portfolio in the Pilbara and Victoria.”
“The funds invested by Lind will further strengthen our balance sheet so that we can accelerate our exploration and development of these projects.”
He added the structure of the placement agreement provides Kalamazoo with “potential pricing upside”.
Deal structure
Under the deal, Lind will pre-pay $3 million to Kalamazoo for an investment in its shares with a value of $3.1 million.
Initially, 2.1 million ordinary shares will be issued to Lind and 6 million options. The options will have an exercise price of $0.375 each and expiry of 36-months after issue.
The investment is a staged placement over a 24-month period, with the subscription price for Kalamazoo’s shares to be no less than $0.50 over the first six months.
At any time during the 24-month term, Kalamazoo can elect to repay any unused funds from the advanced payment. However, Kalamazoo must first give Lind the ability to subscribe for one-third of that amount.
Lind founder Jeff Eastern said the company was pleased to increase its commitment in Kalamazoo 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.”
Fast-tracked exploration
Funds from the pre-paid investment will be used to complete the scoping study and phase three exploration at Kalamazoo’s Ashburton gold project in Western Australia’s Pilbara region.
The investment will also finance continued exploration at the Mallina West gold project in the Pilbara.
Kalamazoo also plans to continue exploration and drilling at its Victorian gold projects: Castlemaine, South Muckleford, Myrtle, Tarnagulla and Mt Piper.
The funding will assist with advancing the exploration joint venture of Kalamazoo’s DOM’s Hill and Marble Bar lithium projects in the Pilbara.
Exploration and drilling will also continue at Kalamazoo’s wholly-owned Pear Creek lithium project in the Pilbara.
Over in NSW, the company will kick-off exploration at its wholly-owned Jingellic lithium project.