Krakatoa Resources Ltd Secures $3.1 Million to Accelerate Drilling at Zopkhito Project

Strategic Insights -

Krakatoa Resources Ltd (ASX:KTA) is set to raise $3.1 million through a two-tranche placement to fund its drilling program at the Zopkhito Antimony-Gold Project in Georgia. The placement, supported by institutional and sophisticated investors, will issue new shares at A$0.0105 each with options exercisable at A$0.02. The funds will accelerate the ongoing 7,000-10,000-metre maiden drilling program, targeting antimony and gold systems, and convert the foreign resource into a JORC-compliant estimate.

Key Takeaways:

  • Krakatoa Resources Ltd will issue 295,238,095 new shares, representing approximately 38% of its current capital, at A$0.0105 each.
  • The placement will raise A$3.1 million, with Tranche 1 raising A$1.995 million and Tranche 2, subject to shareholder approval, raising A$1.105 million.
  • The funds will support the ongoing drilling program at the Zopkhito Project, which includes in-adit work on high-grade antimony veins and gold alteration zones.
  • The project hosts a foreign estimate of 225,000 tonnes at 11.6% antimony for 26,000 tonnes contained and 7.1 million tonnes at 3.7 grams per tonne gold for 815,119 ounces.
  • Executive chairman Colin Locke stated that the placement equips the company to deliver on its 2025 drilling plans.
  • Directors plan to participate in Tranche 2 with 5 million shares, and Ignite Equity and GBA Capital acted as joint lead managers, receiving a 6% fee plus 90 million options.

Statistics:

  • The Zopkhito Project hosts a foreign estimate of 225,000 tonnes at 11.6% antimony for 26,000 tonnes contained.
  • The project also hosts 7.1 million tonnes at 3.7 grams per tonne gold for 815,119 ounces.
  • The placement will issue 295,238,095 new shares, representing approximately 38% of Krakatoa's current capital.
  • Tranche 1 will raise A$1.995 million, while Tranche 2 will raise A$1.105 million if shareholder approval is obtained.

Sources:

  • "Krakatoa Resources Ltd (ASX:KTA)–Placement of Shares and Options." (No date).
  • Locke, Colin. Quoted in "Krakatoa Resources Ltd (ASX:KTA)–Placement of Shares and Options." (No date).