Kalamazoo Resources welcomes successful spinoff of lithium assets with Kali Metals’ ASX listing

Kalamazoo Resources (ASX: KZR) has successfully completed its Australian lithium projects spinoff via a demerger and keenly-sought $15 million initial public offering (IPO) of Kali Metals (ASX: KM1).

The Kali IPO received very strong support from Kalamazoo shareholders and new investors, with the offer heavily oversubscribed.

Kalamazoo chair and chief executive officer Luke Reinehr said the spinoff of the lithium assets means the company can now focus on progressing its highly prospective gold projects in Western Australia and Victoria, as well as pursue new opportunities.

The company has exploration programs currently underway in Victoria and has commenced planning for the 2024 programs across its project portfolio.

“We are delighted that the IPO of Kali Metals has been completed with KM1 commencing trading today on the ASX,” Mr Reinehr said.

“Kali and its portfolio of high-quality lithium assets across Australia represents an outstanding opportunity for investors.”

“The response from Kalamazoo shareholders and new and sophisticated investors through the IPO process has been incredible with the maximum $15m having been quickly raised.”

“As a significant shareholder of Kali and with our shareholders also receiving an in-specie distribution of Kali shares, Kalamazoo is looking forward to the acceleration of exploration activities across Kali’s exploration projects in 2024,” he added.

In a separate ASX announcement, Kali Metals managing director Graeme Sloan commented, “It is truly an exciting day for Kali shareholders with the Company successfully listing as a publicly traded company on the ASX.”

“We now look forward to creating shareholder value through the successful exploration of our portfolio of lithium projects in Western Australia, New South Wales and Victoria.”

Significant lithium portfolio

Kali Metals enters the market with a large lithium-focused exploration portfolio covering more than 3,854 sq km across Australia, primarily in the Pilbara and Eastern Yilgarn regions in Western Australia along with the Lachlan Ford Belt in northern-eastern Victoria and southern New South Wales.

The key project portfolio comprises five main projects at DOM’s Hill, Higginsville, Jingellic and Tallangatta, Pear Creek and Marble Bar.

Kalamazoo has also assigned Kali with its interests in the SQM earn-in agreement, which operates in respect of the DOM’s Hill and Marble Bar projects.

Exploration underway

Exploration activities have already been progressing across the entire Kali project portfolio, including various field reconnaissance and rock chip sampling campaigns as well as planning for Kali’s 2024 extensive exploration program.

It includes a maiden reverse circulation drilling program expected to commence at the Higginsville lithium project in the first or second quarter of 2024.

The work will be part of a two-year exploration program already planned to test Kali’s large portfolio.

Lithium targets have previously been identified at the Spargoville, Mt Dean, Mt Henry and Buldania North and East prospects, with further analysis underway to identify drill-ready targets.

Key appointment

Kali has appointed Stuart Peterson as general manager – geology to progress its lithium exploration programs.

Mr Peterson brings to the new role extensive experience in the Australian lithium industry as a geologist and exploration manager , including exploring, discovering, and developing world-class lithium projects.

Most recently, he played a key role in the success of Global Lithium Resources’ (ASX: GL1) Manna lithium project in the Goldfields region of WA.