Kalamazoo Resources Limited (ASX:KZR)
Kalamazoo Resources (ASX:KZR) is a gold and base metals explorer whose primary focus is on identifying commercial mineral deposits to explore at its Castlemaine Gold Project in Victoria and its two gold-base metals projects in Western Australia.
Kalamazoo listed on the Australian Stock Exchange on 16 January 2017.
Since that time, Kalamazoo has successfully added value to its Snake Well Gold and Base Metals Project and the Cork Tree Copper Project. At Snake Well, which is located in WA’s Murchison region northeast of Geraldton, Kalamazoo increased the total Mineral Resource (JORC 2012) by 32% to 141,000ozs (20 November 2017).
On the 14th November 2018, Kalamazoo announced the sale of the Snake Well Gold Project to Adaman Resources Pty Ltd (14 November 2018 and 27 December 2018) for $7.0 million. The sale proceeds will be payable over 24 months and will fund Kalamazoo’s exploration and drilling program at the Castlemaine Gold Project and the Pilbara Gold Projects.
As part of the transaction Kalamazoo can elect to engage Adaman to provide up to $4.0m of drilling services (deducted from the sale proceeds) at the Castlemaine Gold Project, which if exercised further fast-tracks Kalamazoo’s drilling program at the project.
Another key component of the sale was the retention of a 2.5% Net Smelter Royalty on any base metals mined within the Snake Well project area.