Australia-based gold and lithium exploration company Kalamazoo Resources has completed the spin-out of its Australian lithium projects through a demerger of Kali Metals (Kali).

Simultaneously, Kalamazoo shareholders and new investors supported Kali Metals to raise around $15m in its initial public offering (IPO), whose shares started trading on the ASX.

Kalamazoo retains 29,147,250 ordinary shares of Kali, which form 20.2% of Kali’s share capital.

With the transaction, Kali has been established as the spin-out of Kalamazoo’s lithium assets in the Pilbara region, Western Australia and Lachlan Fold Belt, Victoria, and southern NSW.

Also, Kalamazoo assigned its interests of the SQM Earn-in Agreement, which operates in respect of the DOM’s Hill and Marble Bar Projects, to Kali.

Kalamazoo chairman and CEO Luke Reinehr said: “We are delighted that the IPO of Kali Metals has been completed with KM1commencing trading today on the ASX.

“Kali and its portfolio of high-quality lithium assets across Australia represent an outstanding opportunity for investors.

“The response from Kalamazoo shareholders and new and sophisticated investors through the IPO process has been incredible with the maximum $15m having been quickly raised.”

Kalamazoo’s lithium projects comprise the highly prospective lithium mineral rights of Canadian gold miner Karora Resources, across projects located south of Kalgoorlie, Western Australia.

With the demerger of Kali, the Australian mining company is enabled to focus on its highly prospective gold exploration assets in Victoria and Western Australia.

Kalamazoo has planned well-advanced exploration programmes for 2024, which are scheduled to begin in the first quarter of this year.

Kali has appointed highly experienced geologist Stuart Peterson as geology general manager, to advance its lithium exploration programs.

Both the Kalamazoo and Kali share registries are managed by the Advanced Share Registry.

Reinehr added: “As a significant shareholder of Kali and with our shareholders also receiving an in-specie distribution of Kali shares, Kalamazoo is looking forward to the acceleration of exploration activities across Kali’s exploration projects in 2024.

“For Kalamazoo, the spin out of our lithium assets means the Company can now focus on progressing our highly prospective gold projects in Western Australia and Victoria, in addition to pursuing new opportunities.

“Kalamazoo currently has exploration programs underway in Victoria and has commenced planning for its 2024 programs across our project portfolio.”