Krakatoa Resources (ASX:KTA) has executed a deal to amend and restate the Zopkhito option term sheet with JSC Caucasus Minerals to acquire an 80% stake in the project through staged investment.
The company says the amended term sheet improves the commercial structure by changing upfront acquisition payments to a staged investment.
Krakatoa will acquire an initial 30% stake, before earning the additional 50% to bring the company’s holding to 80%.
The company has maintained its commitment to a minimum expenditure of US$2 million ($2.8 million).
Krakatoa has committed almost US$1.6 million in exploration costs thus far ahead of an upcoming JORC-compliant resource estimate and preliminary economic assessment.
CEO Mark Major says restructuring the deal is a “key milestone” for the company as it focuses on divesting into the project’s on-ground development.
“Importantly, it reflects the changes in the global political and supply environment over the past 18 months, particularly the increasing strategic importance of antimony,” Major says.
“These changes now position us to create value more efficiently at Zopkhito, while maintaining a clear pathway to increased ownership.
“With the snow now melting and all the preparatory work on the access and camp carried out last year, we expect to be back drilling next month.
“This extended field season will provide valuable time to work towards converting the existing foreign resource to be JORC compliant, as well as advancing the metallurgical process design and mining options this year.”
The JORC Code is a professional reporting standard used by mining companies for exploration results, mineral resources, and ore reserves, as reported by Mining.com.au.
The JORC Code is maintained by the Joint Ore Reserves Committee to ensure that information released to the market is accurate, balanced, and supported by appropriate technical expertise.
Located in the Racha region of Georgia, Zopkhito has a resource of 26,000 tonnes of antimony and more than 800,000 ounces of gold, uncovered in historical exploration.
Krakatoa Resources is advancing the Zopkhito Project in Georgia, while also exploring for other critical and precious metals in Australia.
Write to Maddison Elliott at Mining.com.au
Images: Krakatoa Resources
