Kaiser Reef Non-Executive Chairman Acquires 41% More Stock
Saturday, Jan 25, 2025 5:55 pm ET
3min read 
Kaiser Reef Limited (ASX:KAU) has announced that its Non-Executive Chairman, Steven Formica, has acquired an additional 41% of the company's shares. The acquisition, valued at A$329,000, was made at A$0.15 per share, representing a significant increase in Formica's stake in the gold mining company.
Formica's decision to acquire more shares comes amidst a strategic investment agreement between Kaiser Reef and Ragnar Metals, where Ragnar agreed to a A$5 million placement of Kaiser shares at A$0.15 per share. As part of this agreement, Ragnar will have the right to have a nominee representative appointed to Kaiser's board so long as it holds no less than 10% of shares on issue. This entitlement has led to Formica's appointment as non-executive chairman of Kaiser Reef.
The strategic investment will support the development of Kaiser Reef's A1 Nova gold project in Victoria, which hosts high-grade gold mineralisation at unmined levels of the historic A1 mine. Kaiser Reef is looking to double production to 24,000 ounces per annum, and drilling results and geological modelling have shown that the high-grade reef system continues beyond the levels historical miners could not reach, with grades returned from drilling exceeding 50 gram per tonne gold.
Formica's acquisition of additional shares signals his confidence in Kaiser Reef's growth prospects and the potential of the A1 Nova gold project. The investment by Ragnar Metals, coupled with Formica's increased stake, demonstrates the support and belief in Kaiser Reef's strategic direction and future growth potential.
Kaiser Reef's share price has been volatile in recent months, but the company's focus on expanding its gold mining operations and the strategic investment by Ragnar Metals may provide a boost to its share price. Investors should monitor Kaiser Reef's progress and the development of the A1 Nova gold project to assess the potential impact on the company's share price.
In conclusion, Kaiser Reef's Non-Executive Chairman, Steven Formica, has acquired an additional 41% of the company's shares, demonstrating his confidence in the company's growth prospects and the potential of the A1 Nova gold project. The strategic investment by Ragnar Metals, coupled with Formica's increased stake, signals support for Kaiser Reef's strategic direction and future growth potential. Investors should monitor Kaiser Reef's progress and the development of the A1 Nova gold project to assess the potential impact on the company's share price.
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