Kalamazoo Resources has successfully closed an oversubscribed Share Purchase Plan, raising $4.1 million to fast-track drilling and development at its Ashburton Gold Project. Combined with a recent placement, the company secures $12.1 million to advance exploration and pre-feasibility studies.
- Oversubscribed Share Purchase Plan raises $4.1 million
- Total capital raised reaches $12.1 million including $8 million placement
- Funds earmarked for Ashburton Gold Project drilling and Mt Olympus PFS
- Approximately 21% of shareholders participated in the SPP
- Current drilling program targets resource extensions beneath Mt Olympus open pit
Strong Capital Raise Signals Confidence
Kalamazoo Resources Limited (ASX – KZR) has closed its Share Purchase Plan (SPP) with an impressive $4.1 million raised, well above the initial $2 million target. The SPP attracted applications totaling approximately $8.6 million, prompting the company to accept oversubscriptions and issue over 24 million new shares. This strong retail shareholder support underscores confidence in Kalamazoo's flagship Ashburton Gold Project in Western Australia's Pilbara region.
Funding to Accelerate Drilling and Studies
Alongside a recently completed $8 million placement, Kalamazoo has secured a total of $12.1 million before costs. These funds are earmarked to accelerate resource delineation and exploration drilling at Ashburton, particularly focusing on the Mt Olympus deposit. The company is currently advancing a 2,600-metre diamond drilling program designed to test and infill down-plunge extensions of existing Indicated and Inferred Resources beneath the current open pit shell.
These drilling results are expected to provide critical inputs for the ongoing Mt Olympus Pre-Feasibility Study (PFS), which aims to optimise mine development plans. Kalamazoo’s Executive Chairman, Luke Reinehr, emphasised that this campaign represents the first phase of a broader drilling program, with plans to expand operations by deploying additional rigs on site.
Shareholder Engagement and Strategic Outlook
Approximately 21% of Kalamazoo’s 2,500 shareholders participated in the SPP, reflecting solid retail investor engagement. The offer was extended to shareholders in Australia, New Zealand, Germany, and Switzerland, with a cap of $30,000 per participant at $0.17 per share. The company has refunded scaled-back applications in line with its offer policy.
Kalamazoo’s portfolio includes several gold projects across Victoria and Western Australia, but the Ashburton Gold Project remains the crown jewel with a 1.44 million ounce gold resource. The fresh capital injection positions the company well to advance its exploration and feasibility milestones, potentially enhancing the project’s valuation and attractiveness to investors.
Looking Ahead
With drilling underway and the PFS progressing, Kalamazoo is poised to deliver critical updates on resource growth and project economics in the coming months. The successful capital raise not only strengthens the company’s balance sheet but also signals a vote of confidence from its shareholder base in the Ashburton project’s potential.
Bottom Line?
Kalamazoo’s oversubscribed capital raise sets the stage for accelerated drilling and a pivotal phase in advancing the Ashburton Gold Project.
Questions in the middle?
- When can investors expect initial results from the current diamond drilling program?
- How might the drilling outcomes impact the Mt Olympus Pre-Feasibility Study assumptions?
- What are the company’s plans for further exploration beyond the current drilling phase?