Kalamazoo Locks in $10M at 29% Premium to Fund Ashburton Gold Study and Drilling
Key Takeaways
- Kalamazoo is raising A$10.0 million by issuing 55,555,554 shares at A$0.18, a 29% premium to the last close and 27% above the 15-day VWAP.
- Muqasab SPV Holdings, a Saudi-led Gulf-backed group making its first gold investment, takes 9.9% for A$7.84 million, with settlement due by 3 November 2026.
- Existing cornerstone YT International adds A$2.16 million, lifting its stake from about 6.6% to 8.5%, with settlement around 12 October 2026.
- The raise was non-brokered with no fees payable, so the full A$10 million goes to drilling, the PFS, early feasibility work and the Xanadu oxide evaluation.
- The funding backs a 100%-owned 1.44Moz Ashburton resource at 2.8 g/t, with Mt Olympus the largest component at 1,073koz.
A$10m cornerstone placement secures 29% premium for Kalamazoo (ASX: KZR)
Kalamazoo Resources has entered into binding subscription agreements to raise A$10.0 million through a strategic placement of 55,555,554 new fully paid ordinary shares at A$0.18 per share. The funding is aimed at advancing the Ashburton Gold Project.
The issue price is a 29% premium to the last closing price and a 27% premium to the 15-day VWAP (volume-weighted average price, the average price weighted by trading volume), both calculated to 5 October 2026. A premium means new investors are paying more than the market was recently willing to pay.
The placement introduces Muqasab SPV Holdings Ltd (“Muqasab”), an Abu Dhabi Global Market company backed by a Saudi-led group of Gulf and international private investors. It will become a 9.9% strategic shareholder on completion. The trading halt was lifted on 7 October 2026.
The announcement links the premium investment to Kalamazoo’s highly successful 2026 drilling program at Mt Olympus. For you as an investor, a premium price signals that these buyers are backing the Ashburton development strategy.
Who is investing and how much
Two investors are taking part. Muqasab is new to the register, while YT International is an existing cornerstone shareholder.
| Investor | Placement Shares | Investment | Holding on completion | Settlement |
| Muqasab SPV Holdings Ltd | **43,555,554** (directly or through a nominee) | **A$7.84M** | **9.9%** | Expected on or before **3 November 2026** |
| YT International | **12,000,000** | **A$2.16M** | Rising from approximately **6.6%** to **8.5%** | On or around **12 October 2026** |
Muqasab’s settlement is expected to follow completion of administrative and banking arrangements in Abu Dhabi, UAE, and satisfaction of any required conditions and regulatory approvals.
Luke Reinehr, Executive Chairman
“This is a landmark investment for Kalamazoo. Securing a total of A$10 million from two cornerstone investors at a substantial premium is a strong endorsement of the quality of our asset base, our recent drilling success and the development pathway emerging at Ashburton…”
Reinehr also described the investment as Muqasab’s first in the gold sector.
Peter Judge, Muqasab Director
“We were drawn to the expertise of the Kalamazoo team and the quality of the Ashburton assets, particularly the recent results at Mt Olympus. We look forward to supporting the company as a long-term shareholder.”
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What the funding delivers for the Ashburton Gold Project
Kalamazoo will apply the funding from the placement towards:
- Targeted drilling to expand and optimise the resource and development opportunity
- Completion of the Pre-Feasibility Study (PFS)
- Early feasibility activities
- Accelerated evaluation of the adjoining Xanadu oxide prospect as a potential second Ashburton development opportunity
A PFS is an engineering and economic study that tests whether a project is worth advancing towards development.
The placement was sourced and secured directly by Kalamazoo through its strategic investor network, without a brokered bookbuild and with no brokerage or placement fees payable. That means no placement fees are payable out of the raise.
The shares will be issued using the company’s current capacity under ASX Listing Rules 7.1 and 7.1A. On issue, they will rank equally with existing Kalamazoo shares and be quoted on the ASX from their date of issue.
Ashburton resource snapshot
The 100% owned Ashburton Gold Project totals 1.44Moz across Indicated and Inferred categories. Indicated resources carry higher geological confidence than Inferred.
| Category | Tonnes (000’s) | Grade (g/t) | Ounces (000’s) |
| Indicated | 9,699 | 2.9 | 911 |
| Inferred | 6,491 | 2.5 | 525 |
| **Total** | **16,190** | **2.8** | **1,436** |
Mt Olympus is the largest component at 1,073koz. The previous inferred resource at Romulus (27koz) is not included in the total.
Understanding strategic cornerstone placements
A placement issues new shares to selected investors rather than offering them to the whole market. A cornerstone investor takes a large, anchoring stake.
The price matters. At A$0.18, the placement sits 29% above the last close, 27% above the 15-day VWAP and 22% above the 30-day VWAP.
The raise was also non-brokered, with no brokerage or placement fees payable. For you, that means the A$10M is not reduced by those fees.
Funding for the PFS and early feasibility activities is also relevant. The company says the placement materially strengthens its balance sheet as it advances Ashburton.
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Timeline and what to watch
The indicative timetable is subject to change:
- Trading halt: 6 October 2026
- Trading halt lifted and return to trading on ASX: 7 October 2026
- Settlement and allotment of Placement Shares, YT International: on or around 12 October 2026
- Placement settlement, Muqasab: on or before 3 November 2026
- Allotment of Placement Shares, Muqasab: on or before 5 November 2026
The announcement gives no dates for the next milestones: completion of the PFS, resource-growth drilling results and evaluation of Xanadu.
The investment angle is straightforward: a new 9.9% strategic shareholder backed by Gulf and international private investors, funding allocated to studies and drilling, and a stated pathway towards development at Ashburton.
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