Krakatoa Resources (ASX:KTA) is raising $3.1 million to fund ongoing drilling at the Zopkhito Antimony-Gold Project in Georgia.
The company will issue 295.24 million shares at a price of $0.0105 per share, representing around 38% of Krakatoa’s shares on issue.
Ignite Equity and GBA Capital are acting as joint lead managers for this placement, receiving an aggregate 6% fee of total funds raised and 90 million options.
Krakatoa will issue 112.19 million shares to raise an initial $1.995 million in tranche one, which is expected to settle on 17 September, before issuing the remaining 105.24 million shares after attaining shareholder approval.
The company anticipates directors to participate in the placement, subscribing for a proposed 5 million shares and 2.5 million options, also subject to approvals.
Shareholders will meet to discuss placement approvals at a general meeting on or around 31 October.
Executive Chairman Colin Locke says this capital raise will bring the company to a close of its 2025 drilling plans, as it completes a planned 7,000m to 10,000m of maiden drilling.
“With two rigs now actively drilling, the program is designed to convert and expand the current foreign resource into a JORC-compliant mineral resource,” Locke says.
“It is an exciting time for the company as we look to deliver consistent news flow from ongoing drilling and resource conversion over the coming months.”
Krakatoa Resources is an antimony and gold explorer focused on advancing its Zopkhito Project in Georgia, while also exploring other critical and precious metals in Western Australia and New South Wales.
Write to Maddison Elliott at Mining.com.au
Images: Krakatoa Resources
