Kalamazoo Resources has received combined investments of AU$8.0 million from Novo Resources Corp and investor Eric Sprott.
Kalamazoo Resources (ASX:KZR) announced that it has received firm commitments to raise AU$8.0 million via a placement of 20 million ordinary fully paid shares
and 20 million attaching unlisted options to Novo Resources Corp (TSXV:NVO,OTCQX:NSRPF) and investor Eric Sprott.
Highlights are as follows:
- Canadian listed gold explorer Novo Resources and Eric Sprott each subscribe to 10 million Kalamazoo shares at AU$0.40 per share to raise AU$8.0 million.
- Novo has a market capitalisation of ~C$600 million (US$460 million).
- Each new share issued will have an attaching option, exercisable at AU$0.80 within 18 months.
- Novo’s Dr. Quinton Hennigh appointed to Kalamazoo’s Technical Advisory Committee ▪
- Kalamazoo cash balance of AU$9 million after placement with a further AU$4 million of receivables over the next 12 months from the company’s recent sale of its Snake Well gold project.
- Kalamazoo will use funds to expand its exploration and drilling programs at Castlemaine, South Muckleford and Tarnagulla Central gold projects in Victoria
Luke Reinehr, chairman & CEO, commented:
The investment of AU$8 million by Novo and Eric Sprott is a terrific endorsement of our Central Victorian Goldfield’s strategy to explore smarter, using new technologies and innovations in a low impact manner.