Kaiser Reef (ASX: KAU)
Provided an update on the status of call options issued to Auramet International Inc (Auramet), as part of funding the Henty Gold Mine acquisition.
The final gold call option delivery has been completed, all gold call options have now been exercised and settled ; no remaining price caps in place.
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Kaiser Reef Henty Gold mine, Tasmania – Credits Kaiser Reef Limited
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| Kaiser Reef | ASX : KAU | |
| Stage | Production, Development, Exploration | |
| Metals | Gold | |
| Market cap | A$166 million @ A$0.28 | |
| Location | Victoria, Tasmania | |
| Website | www.kaiserreef.com.au/ |
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KAISER REEF FULLY LEVERAGED TO SPOT GOLD PRICES
COMPANY UPDATE
Kaiser Reef Limited (ASX: KAU) (Kaiser or the Company) is pleased to provide an update on the status of call options issued to Auramet International Inc (Auramet), as part of funding the Henty Gold Mine (Henty) acquisition.
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HIGHLIGHTS
Final gold call option delivery completed
Final 1,000oz Au delivered to Auramet at A$5,300/oz Au at end of February
Total 6,000oz Au delivered to Auramet at A$5,300/oz Au over last 6 months
All gold call options have now been exercised and settled ; no remaining price caps in place
Full leverage to prevailing spot gold price, currently >A$7,000/oz Au
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As part of the Henty acquisition, Kaiser secured A$10 million in funding from Auramet, comprising an A$8 million senior secured gold loan and a A$2 million unsecured gold prepayment facility, supporting a strong working capital position at completion.
The outstanding gold loan balance has now been reduced to 832oz Au as at the end of February, with eight monthly repayments of 104oz remaining and final repayment due in October 2026.
Under the financing arrangements, Auramet was issued 6,000 call options at A$5,300/oz Au. All call options have now been exercised and settled.
As a result, from 1 March , Kaiser has no remaining gold price caps in place and is fully exposed to prevailing spot gold prices across all future production.
Kaiser’s Quarterly Activities Report, for the quarter ending 31 December 2025, highlighted a cash balance increase of $13.7 million, after a $3.3 million impact from the call options on realised gold revenue.
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Kaiser’s Managing Director, Brad Valiukas, commented:
“Following the completion of the Henty acquisition in May 2025, Kaiser has transformed into a profitable gold miner with a robust balance sheet and a strong pipeline of exploration and development opportunities.
“Auramet’s support for Kaiser’s acquisition of the Henty Gold Mine saved significant dilution, and we are pleased to have Auramet as a supportive partner.
“With final delivery into the call options now complete, every ounce produced is fully exposed to spot gold prices, putting Kaiser in an even stronger position to both strengthen the balance sheet and the Company.
“At the same time as we have been delivering into the call options, we have been systematically reducing other remaining transaction-related liabilities, including the Auramet gold loan, deferred payments to Catalyst and environmental bond commitments, further strengthening Kaiser ’s balance sheet and financial flexibility.
“Kaiser intends to both continue strengthening the balance sheet and grow the business organically with targeted investment, while being in a great position to take advantage of inorganic opportunities.”
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To read the full news release please click HERE
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To View Kaiser Reef’s current share price and chart, please click HERE
To View Kaiser Reef’s historical news, please click here
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Disclosure
At the time of writing the author holds shares in Kaiser Reef.
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