Kaiser Reef aims to boost gold production with Ragnar Metals investment

Kaiser Reef Ltd (ASX: KAU) managing director Jonathan Downes joins Jonathan Jackson to discuss an investment agreement with Ragnar Metals Ltd (ASX: RAG). Ragnar has agreed to purchase Kaiser shares at $0.15 per share and will gain board representation, with Ragnar chairman Steve Formica appointed non-executive chairman of Kaiser. The investment follows Ragnar's due diligence focused on Kaiser’s A1 Nova Gold Project, which aims to increase high-grade gold production from the A1 Mine.
Kaiser has released an updated presentation on the engineering, planning and geological assessment of the A1 mine, highlighting a significant shift from 40 years of remnant gold mining. The company has invested approximately $24 million in the Nova Gold Project, upgrading power, fleet and ventilation. The capital from Ragnar's $5.01 million placement will support the final stages of this development and establish a dedicated project team.
The strategic investment terms include two tranches, with a total of 33.4 million shares and 16.7 million options issued, subject to shareholder approval. Ragnar will also receive a 1.5% NSR on gold produced from the A1 Mine for five years starting July 1, 2025, and retain a board nominee right if it holds at least 10% of Kaiser shares.
Downes expressed his enthusiasm for the collaboration and the potential increase in gold production, highlighting the project's long-term planning and high-grade gold potential.
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