Krakatoa Resources (ASX:KTA) has received firm commitments for a $2.4 million placement to fund the acquisition of an initial 10% interest in the Zopkhito Antimony-Gold Project in Georgia and advance its 2026 work program.
The company will issue 400 million new shares to wholesale and sophisticated investors at $0.006 each. Participants will receive one free-attaching unlisted option for every four shares subscribed, exercisable at $0.01 and expiring on 29 September 2028, subject to shareholder approval.
A private investment entity owned by Hong Kong-based investor Hui Ling has committed $1.8 million, accounting for 14.9% of Krakatoa’s post-placement issued capital.
Krakatoa describes Hui as a natural resources investor with experience across the oil, gas, and broader commodities sectors.
Through its wholly owned Georgian subsidiary, Krakatoa will pay US$875,000 ($1.24 million) to acquire the initial interest. It retains an exclusive option to increase its ownership to 80% through a staged earn-in structure announced in April.
Krakatoa reports foreign estimates for Zopkhito of 225,000 tonnes @ 11.6% antimony for 26,000 tonnes of contained antimony, and 7.1 million tonnes @ 3.7 grams per tonne gold for 815,119 ounces of contained gold.
These estimates are not reported in accordance with the JORC Code 2012, and sufficient work has not been completed to classify them as a mineral resource under the code.
The company also sees potential for copper and tungsten mineralisation at Zopkhito and plans to investigate these during the upcoming work program.
Executive Chairman Colin Locke says the financing will support Krakatoa’s initial investment and ongoing project work.
“This placement marks the first step to 80% ownership of Zopkhito while accelerating the 2026 resource definition programs and development activities,” Locke notes.
“Our current drilling aims to validate the historical mineralisation model as we work towards delivering a maiden JORC-compliant mineral resource estimate.”
The work program includes surface resource definition and underground in-adit drilling, bulk sampling, metallurgical testwork, preliminary mining studies, and environmental baseline and permitting activities.
Lodge Partners placed the remaining $600,000 with existing shareholders and will receive a 6% fee on those funds, plus 25 million unlisted options subject to shareholder approval.
The issue price represents a 14.3% discount to Krakatoa’s last closing price and a 10.4% discount to its 15-day volume-weighted average price. Settlement is scheduled for 11 August, with the shares expected to begin trading the following day.
Krakatoa Resources is an Australian explorer advancing antimony and gold opportunities in Georgia.
Write to France Pinzon at Mining.com.au
Images: Krakatoa Resources
