Kaoko Metals (ASX:KAO) has received firm commitments for a $20 million placement to accelerate diamond drilling at its Chalkos Copper-Silver Project in Namibia.
The company will issue approximately 9.1 million shares at $2.20 each. The price represents a 12% discount to Kaoko’s 3 September closing price of $2.50 and a 20.2% premium to its 15-trading-day volume-weighted average price of $1.83.
Together with existing cash, the proceeds will lift Kaoko’s cash balance to more than $24 million before costs.
Kaoko says it plans to mobilise a second diamond rig and expand drilling at the Otniel and Donkey Hill prospects. Funds will also support mapping, geochemical sampling, and geophysics across the broader 400km² Chalkos licence area.
Managing Director Gerard O’Donovan says demand for the placement followed early observations from the first diamond holes drilled at Otniel, which the company reported last week.
“These funds allow us to move decisively to bring a second diamond rig to Chalkos and expand drilling at the priority Otniel and Donkey Hill prospects,” O’Donovan says.
Kaoko says it will also undertake geophysical work at its Karibib Gold-Copper-Tungsten Project ahead of a proposed maiden drilling program. The company is earning an interest of up to 85% in Karibib, with further drilling dependent on the exploration results.
Settlement of the placement is expected on 14 September, followed by the allotment and commencement of trading in the new shares on 15 September.
Euroz Hartleys, part of Euroz Hartleys Group (ASX:EZL), and Cumulus Wealth acted as joint lead managers and bookrunners.
Kaoko is an Australian explorer focused on copper, silver, and gold projects in Namibia’s Kaoko and Damara belts. Its portfolio includes the wholly owned Chalkos project and the Karibib project.
Write to France Pinzon at Mining.com.au
Images: Kaoko Metals
