Kalamazoo Resources Launches $2M Underwritten Share Purchase Plan at $0.17
Kalamazoo Resources has initiated a $2 million underwritten Share Purchase Plan, offering eligible shareholders shares at a 16.4% discount to recent prices. The offer aims to fund exploration and development activities across its Victorian and Western Australian projects.
- Share Purchase Plan offers shares at $0.17, a 16.4% discount
- Maximum subscription of $30,000 per eligible shareholder
- Underwritten up to $2 million by institutional investors
- Funds targeted for exploration, Mt Olympus Pre-Feasibility Study, and working capital
- Offer open to shareholders in Australia, New Zealand, EU (Germany), and Switzerland
Kalamazoo Resources Announces Share Purchase Plan
Kalamazoo Resources Limited (ASX, KZR), a gold and base metals explorer with projects spanning the Central Victorian Goldfields and Western Australia, has today dispatched its Share Purchase Plan (SPP) offer booklet to eligible shareholders. The plan invites shareholders registered as of 23 December 2025 to purchase new shares at an issue price of $0.17 each, representing a notable 16.4% discount to the recent 10-day volume weighted average price.
Offer Details and Eligibility
Eligible shareholders in Australia, New Zealand, the European Union (specifically Germany), and Switzerland can subscribe for up to $30,000 worth of shares. The SPP is non-renounceable and capped at a total raise of $2 million, with the company reserving the right to accept oversubscriptions or scale back applications if demand exceeds supply. The offer closes on 30 January 2026, with new shares expected to be issued and commence trading by early February.
Underwriting and Strategic Intent
The SPP is underwritten by two unrelated sophisticated investors, Murtagh Bros Vineyards Pty Ltd and Noble Investments Superannuation Fund Pty Ltd, providing a degree of certainty to the capital raise. The funds raised will primarily support resource delineation and exploration drilling, the Mt Olympus Pre-Feasibility Study, and general working capital needs. This capital injection aligns with Kalamazoo’s ongoing efforts to advance its portfolio, which includes the Ashburton Gold Project and Mallina West Project in the Pilbara, as well as multiple projects in Victoria near world-class gold mines.
Investor Considerations and Risks
While the discounted issue price offers an attractive entry point, the company cautions that shares remain a speculative investment subject to market fluctuations. The underwriting agreements contain standard termination clauses that could introduce some uncertainty, and the company retains discretion over scale-back decisions. Shareholders are encouraged to seek independent financial advice and carefully consider the terms before participating.
Looking Ahead
Kalamazoo’s capital raising via this SPP reflects a strategic push to fund exploration and feasibility studies critical to unlocking value in its mineral assets. The market will be watching closely to see the level of shareholder uptake and how the company deploys the new funds to advance its projects in the coming months.
Bottom Line?
Kalamazoo’s underwritten SPP sets the stage for accelerated exploration, but investor appetite and execution will be key to watch.
Questions in the middle?
- Will shareholder demand exceed the $2 million underwriting cap, triggering scale-backs?
- How will the company prioritise the allocation of funds across its diverse project portfolio?
- What impact will the SPP have on Kalamazoo’s share price and liquidity post-issue?
