Australia's Kalamazoo Resources falls on lithium project spin-off plan

Kalamazoo Resources

08/05/2023 05:01

** Shares of Australia's Kalamazoo Resources Ltd  KZR.AX 
fall as much as 7.4% to A$0.125, their lowest level since April
5
    ** Stock on track for worst day since April 26, if current
losses hold  
    ** Gold miner says co will spin out its Australian lithium
projects into a new ASX-listed exploration company, via a
demerger and concurrent initial public offering of Kali Metals
Limited
    ** Says Kali is expected to raise A$10 mln ($6.77 mln) to
A$12 million at IPO to fund its exploration and drilling plans
across the combined Australian lithium portfolio
    ** Adds Kalamazoo to own 55% of Kali prior to IPO      
    ** KZR has fallen 35.7% this year, as of last close


($1 = 1.4775 Australian dollars)

 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))