Steady debut for Kalamazoo

Gold-focused Kalamazoo Resources has wrapped up its first day of trading on the ASX, after completing a downsized $5 million initial public offering.

Perth-based Kalamazoo initially planned to raise $10 million from investors through its IPO, priced at 20 cents per share, but in November it issued a supplementary prospectus detailing a decreased raising to $5 million at the same price, with lead manager DJ Carmichael becoming an underwriter for the revised offer.

At the close of trade today, Kalamazoo shares were worth 21 cents each.

“With this capital raising, the company will immediately progress its previously outlined exploration and development initiatives at the Snake Well gold project,” managing director Peter Benjamin said in a statement.

“These initiatives are intended to continue to produce ongoing cashflow while exploring to grow Kalamazoo’s assets and resources.”

Kalamazoo’s flagship Snake Well mine, located in the Murchison region, was acquired from iron ore-focused miner Atlas Iron in 2013.

The company also owns a 51 per cent stake in the Cork Tree copper project in the Doolgunna region, close to Sandfire Resources’ DeGrussa copper mine.