PERTH (miningweekly.com) – Junior Kalamazoo Resources has welcomed Canadian gold explorer Novo Resources Corporation and investor Eric Sprott as new shareholders, following a combined share placement valued at A$8-million.

Both Sprott and Novo have each subscribed for up to 10-million shares in Kalamazoo, at a price of 40c each, along with 20-million attaching unlisted options.

The shares will be issued under the company’s existing placement capacity, while the options would be issued subject to shareholder approval at the company’s annual general meeting.

Following the completion of the share placement, Kalamazoo will have a cash balance of some A$9-million, with a further A$4-million of receivables over the next 12 months, from the company’s sale of its Snake Well gold project.

“The investment of A$8-million by Novo and Sprott is a terrific endorsement of our Central Victorian Goldfields strategy to explore smarter, using new technologies and innovations in a low impact manner,” said Kalamazoo chairperson and CEO Luke Reinehr.

“Kalamazoo’s asset base in Victoria and the Pilbara region of Western Australia is complementary to Novo’s and Sprott’s existing investment strategy in Australia.”

Kalamazoo will use the funds raised to expand its exploration and drilling programmes at its gold projects in Victoria, the company said.

Meanwhile, Novo president and chairperson Dr Quinton Hennigh will be appointed to Kalamazoo’s technical advisory committee, having served with a number of gold mining and exploration companies over the last 25 years, including Newcrest Mining and Newmont Mining.

“Novo is delighted to acquire a significant stake in Kalamazoo. Many companies are exploring the Victorian goldfields since the success of Fosterville. Here at Novo, we quickly recognised the potential of Kalamazoo’s new discovery to be of the same ilk as the recent high-grade veins found at Fosterville,” Hennigh said.

“We look forward to working with Kalamazoo as it accelerates and expands its exploration campaign at this exciting new discovery.”