Kalamazoo Resources Limited (ASX:KZR) agreed to Spin-Off 25% stake in Kali Metals Limited on May 8, 2023. Eligible Kalamazoo shareholders will be entitled to receive a pro-rata distribution of Kali shares at the record date. Kalamazoo will spin out its Australian lithium projects into Kali, via a demerger.

Kalamazoo also entered into an agreement with Karora Resources Inc. who'll vend into Kali its highly prospective lithium mineral rights across an extensive range of projects located south of Kalgoorlie, Western Australia. Kali Metals Limited will be a listed company upon completion. The Demerger is subject to final Board, regulatory and shareholder approvals.

Distribution is expected to be held in early September 2023. As of November 10, 2023, the transaction remains on track for completion by year end. Gilbert and Tobin acted as a legal advisor to Kali Metals.