Kalamazoo Resources spin-off Kali Metals receives strong IPO support
Kalamazoo Resources (ASX: KZR) has confirmed a strong level of interest in the initial public offering (IPO) for spin-out lithium company Kali Metals.
The company said the maximum subscription amount of $15 million had been reached within hours of opening.
The retail portion of the float — comprising broker firm, institutional, chair’s list, and priority offers — has now closed.
The bookbuild is reported to have received support from several high-profile individuals with exposure to the Western Australian lithium sector, as well as a number of institutional investors.
Eligible Kalamazoo shareholders are expected to receive one ordinary Kali share for every 17.64 ordinary Kalamazoo shares via an in-specie distribution, subject to final shareholder and regulatory approvals.
Kali is expected to commence trading on the Australian Stock Exchange in the first week of January.
Kali originated from the spin-out of Kalamazoo’s portfolio of Australian lithium assets in Western Australia, New South Wales and Victoria.
It includes highly-prospective lithium mineral rights previously held by Canadian gold miner Karora Resources across an extensive range of tenements near Kalgoorlie known as the Higginsville lithium project.
Kalamazoo chair Luke Reinehr welcomed the investor support for Kali’s listing.
“We are thrilled that this public offering has received such strong and immediate interest from a wide range of high-calibre investors [and] we are confident they will support Kali in the next stage of its journey to develop the unrivalled portfolio of lithium exploration assets brought together by Kalamazoo and Karora,” he said.
“Some of these investors have also indicated interest in investigating opportunities in relation to Kali’s exploration and potential development programs following the completion of the IPO process, and this will be considered in due course.”
Kali has appointed experienced mining executive Stuart Peterson to the role of technical advisor (geology).
Mr Peterson has worked as a geologist and exploration manager in the Australian lithium industry and has contributed to the discovery and development of world-class lithium projects.
Most recently, he was instrumental in the success of of Global Lithium Resources’ (ASX: GL1) Manna project in WA’s Goldfields region.
Mr Peterson has previously worked for several ASX-listed, Australian-based critical mineral companies including Nimy Resources (ASX: NIM), Neometals (ASX: NMT) and Lithium Power International (ASX: LPI).
He has led the development and execution of exploration programs in Australia and overseas and has expertise in asset valuation and value-adding through targeted field programs.
Mr Peterson holds a bachelor’s degree in science, specialising in structural geology, and is a member of the Australian Institute of Mining and Metallurgy (AusIMM).
“We are committed to building a first-class team at Kali and are delighted that Stuart has been appointed by Kali,” Mr Reinehr said.
“Stuart is an outstanding addition to the Kali team and has hit the ground running as we progress the IPO.”
Kali Metals plans to trade under the ASX ticker code ‘KM1’.