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Kalamazoo lands $3m cornerstone investment

Kalamazoo Resources has secured a $3m cornerstone investment to accelerate the company’s gold and lithium growth strategy from New York-based Lind Global Fund II LP, an entity under the umbrella of the institutional fund manager Lind Partners. With the funds to be transferred within five days, once added to existing cash reserves the mineral explorer’s saddlebags are soon to be stuffed with nearly $5 million in cash.

Founded in 2011, Lind Partners manages institutional funds that are leaders in providing growth capital to small and mid-cap companies on stock exchanges across the US, Canada, the UK and Australia. Funds under the management of Lind typically make direct investments from US$1 million to US$30 million with the firm having completed over 70 direct investments in its time for more than US$850m in total value.

During 2022, Kalamazoo has taken significant steps in building on and progressing our gold and lithium portfolio in the Pilbara and Victoria. The funds invested by Lind will further strengthen our balance sheet so that we can accelerate our exploration and development of these projects.

Terms of the investment agreement include Lind to prepay $3 million to Kalamazoo for an investment in shares worth $3.1 million with commitment fees of $180,000 representing 6 per cent of the advanced payment.

Kalamazoo will use the funds to accelerate its gold and lithium exploration programs in WA’s Pilbara region, Victoria and NSW.

In terms of its flagship 1.65-million-ounce Ashburton gold project picked up from Northern Star in 2020, Kalamazoo plans to complete a scoping study into the development of the project’s underground and open-pit deposits whilst passing the rig over for a third phase of drilling.

The company expects the study to be completed in the third quarter of the year and for the drill program to kick off in the second half of this year.

In addition, the funds will support ongoing exploration at Kalamazoo’s other Pilbara gold play, Mallina West and at the company’s raft of gold projects in Victoria that cover a combined 2016 square kilometres.

On its Pilbara lithium front the funds will assist in the company’s DOMS’s Hill exploration joint venture with Chilean lithium producer SQM, with some also being funnelled into accelerating ongoing exploration and drilling at Kalamazoo’s wholly owned Pear Creek project.

In addition, a portion of the funds will be used to commence greenfields exploration at the company’s recently granted 990-square-kilometre Jingellic lithium project in NSW that hosts an extension of the geology contained within ASX-listed Dart Mining’s Dorchap lithium project.

Dorchap recently garnered more than a few eyes after Dart announced last month that SQM was earning up to 70 per cent of the east coast pegmatite play.

With solid backing from reputable investors and saddlebags brimming with cash, Kalamazoo Resources could be in for a year of heavy news flow as it looks to spin the drill bit over its portfolio.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au

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