Kalamazoo buys into Pilbara gold
PERTH (miningweekly.com) – The share price of junior Kalamazoo Resources more than doubled on Friday after the company inked an option to acquire three prospective gold projects in the Pilbara.
The company told shareholders that it could acquire between 80% and 100% of three highly prospective gold projects, including the Hill, Sisters and Marble Bar projects.
Kalamazoo has acquired a 90-day option across each of the projects for the payment of A$125 000 and the issue of shares to the value of A$200 000.
The company has 90 days in which to exercise the option by entering into formal agreements with the tenement holders by paying them A$150 000 in cash and issuing A$250 000 in shares.
Furthermore, Kalamazoo will issue the tenement holders about A$1-million in shares or cash on achieving a 50 000-oz gold Joint Ore Reserves Committee-compliant resource, or equivalent resource within the next five years.
The three gold projects cover a combined 252 km2 of tenements in the Pilbara, and are considered highly prospective for gold.
Kalamazoo will now complete a detailed review of historic exploration on all the tenements, focusing on locations favourable for gold mineralisation, while starting ground reconnaissance on the tenements.
The junior company’s shares traded at a high of 19c a share on Friday, up from a low of 13.5c a share.
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