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Novo Resources to take 8.17% stake in Kalamazoo Resources

Novo Resources Corp. said Jan. 14 that it will hold an about 8.17% stake in Kalamazoo Resources Ltd. after the completion of a subscription of 10 million units in the company at 40 Australian cents each.

Eric Sprott, a director of Novo, also subscribed for an identical amount.

Each unit is composed of a Kalamazoo ordinary share and a warrant, with each warrant entitling Novo to purchase an additional ordinary share of Kalamazoo at 80 cents each for a period of 18 months from the date of issuance.

Kalamazoo will use the proceeds to further develop, drill and explore its Castlemaine, Tarnagulla, and South Muckleford properties in Victoria, Australia.