KALAMAZOO Resources, an Australian gold explorer with projects in Victoria, has attracted investment from Canadian gold bull Eric Sprott and Canadian-listed company Novo Resources, which has several Pilbara gold projects.
Sprott and Novo will each subscribe to 10m shares in Kalamazoo at a price of 40c/share to raise $8m for Kalamazoo’s drilling programs in the Castlemaine, South Muckleford and Tarnagulla Central gold projects in Victoria.
Kalamazoo chairman and CEO Luke Reinehr said in a statement to the ASX that he was pleased to welcome Mr Sprott and Novo as investors.
“The investment of $8m by Novo and Eric Sprott is a terrific endorsement of our Central Victorian Goldfield’s strategy to explore smarter, using new technologies and innovations in a low impact manner,” he said.
Mr Sprott said he was excited at the prospect of more gold discoveries in Victoria following the results of Kalamazoo’s recent exploration drilling campaigns in the area.
“The Victorian goldfields appear ripe for more high-grade discoveries. We are excited to have found an opportunity with Kalamazoo to pursue what may be yet another significant new discovery,” he said.
Mr Sprott is a director of Novo Resources and the company is aiming to move its WA gold projects into production.