Kalamazoo Resources is building momentum in Victoria through its set of gold projects.
Kirkland Lake Gold’s success at the nearby Fosterville mine has reportedly driven “very strong interest” in Kalamazoo’s Castlemaine project and exploration assets in the immediate area.
Kalamazoo plans to advance the Wattle Gully and Tarnagulla Central exploration projects, as well as the South Muckleford and Wattle Gully South tenements as soon as they are granted.
The company will identify and potentially map gold mineralised reefs for further evaluation and drill testing.
Kalamazoo plans to raise $1.2 million to advance these gold projects by issuing 10 million shares and five million options.
The will be distributed at a 1.3 per cent discount to the 15-day volume weighted average price.
“We are very pleased with the immediate support we have received from institutional and sophisticated investors,” Kalamazoo chairman Luke Reinehr said.
“This fundraising enables Kalamazoo to continue to expand its exploration programs with advanced technologies designed to identify gold bearing mineralisation for our planned diamond drilling.”
Kalamazoo’s recent sale of its Snake Well gold project in Western Australia will further contribute $5 million to the company’s $1.8 million cash balance over the next 18 months.