Kalamazoo Resources (ASX:KZR) raises $8M to advance Ashburton Gold Project

Kalamazoo Resources has received firm commitments to raise $8.0M before costs through an oversubscribed placement, with the raising increased from the targeted amount of up to $5.0M following strong demand from new and existing institutional, professional and sophisticated investors.

The proceeds will primarily support resource growth and extension drilling at the company's 100%-owned Ashburton Gold Project, completion of an updated Mineral Resource Estimate targeted for Q4 2026, advancement of the Mt Olympus Pre-Feasibility Study and selected exploration across its Western Australian and Victorian portfolio.

Highlights

Under the placement, Kalamazoo will issue 65,344,523 new fully paid ordinary shares using its available placement capacity under ASX Listing Rules 7.1 and 7.1A.

The new shares will rank equally with existing Kalamazoo shares and are expected to settle on 23 July 2026, with allotment expected on or around 24 July 2026.

Kalamazoo directors have also committed to subscribe for 1,322,143 shares to raise a further $158,657, subject to shareholder approval at a general meeting to be held as soon as practicable.

The issue price of $0.12 per share represents a 14.3% discount to the company's last closing price of $0.14, a 10.5% discount to the 5 day VWAP of $0.134 per share and a 15.2% discount to the 10 day VWAP of $0.141 per share, with Petra Capital acting as sole lead manager and bookrunner to the placement.

According to the company, the additional funding will enable Kalamazoo to expand its planned resource growth and extension drilling while advancing the updated Mineral Resource Estimate and the Mt Olympus Pre-Feasibility Study.

The company also said further assays are pending from its recently completed resource definition drilling program.

Kalamazoo Executive Chairman Luke Reinehr said

“The additional funding provides the flexibility to expand this next phase of drilling while advancing the updated Mineral Resource Estimate and the PFS. We expect a regular flow of drilling results and project milestones over the remainder of 2026.”

Kalamazoo is the 100% owner of the Ashburton Gold Project, which has a Mineral Resource Estimate of 16.190Mt at 2.8g/t Au for 1.436Moz.

Mt Olympus contains 12.242Mt at 2.7g/t Au for 1.073Moz, comprising an Indicated Resource of 8.896Mt at 2.9g/t Au for 821,000oz and an Inferred Resource of 3.346Mt at 2.3g/t Au for 252,000oz.

The Ashburton Gold Project also includes the Peake, Waugh and Zeus deposits, while the previous Inferred Resource at Romulus of 329,000t at 2.6g/t Au for 27,000oz remains unchanged and is additional to the quoted total resource.

Separately, Kalamazoo has signed a Heads of Agreement with First Western Gold Pty Ltd, a subsidiary of Forrestania Resources Ltd, covering the proposed acquisition of 2 granted exploration tenements and 1 tenement application.

Subject to due diligence and completion, the consideration comprises 1,428,571 Kalamazoo shares at a deemed issue price of $0.14, escrowed for 12 months, together with 344,827 options exercisable at $0.21 and expiring 3 years from the date of issue.

Following the placement, Kalamazoo said its focus is on expanding resource growth and extension drilling at the Ashburton Gold Project while progressing the updated Mineral Resource Estimate targeted for Q4 2026 and advancing the Mt Olympus Pre-Feasibility Study.

The company also said it expects a regular flow of drilling results and project milestones over the remainder of 2026.