The ASX saw numerous resource companies skyrocket yesterday (6 July), while others fell.
Krakatoa Resources (ASX:KTA) was among the companies performing significantly higher, rising 25% to trade shares at $0.005 each, after the company secured $1.6 million in a placement.
The company, which now has a market capitalisation of $4.84 million, is issuing roughly 400 million new shares at $0.004 each to new and existing wholesale and sophisticated investors in this placement.
As reported by Mining.com.au yesterday, proceeds will be deployed to fund Krakatoa’s 2026 exploration season at the Zopkhito Antimony-Gold Project in Georgia.
Lodge Partners is acting as lead manager for the placement.
Krakatoa Resources is advancing the Zopkhito Project in Georgia, while also exploring for other critical and precious metals in Australia.
Brockman Mining (ASX:BCK) jumped 20% to trade at $0.012 per share.
The company has a market capitalisation of $92.80 million and has 104,963 shares traded on the ASX.
Meanwhile, Vault Minerals (ASX:VAU) began trading 11.73% higher on the ASX, with each share going for $5.08.
The market interest follows Genesis Minerals (ASX:GMD) delivering a binding definitive proposal to merge with Vault by the means of a Vault scheme of arrangement.
Vault shareholders will receive 0.7629 Genesis shares plus $0.475 in cash for each Vault share held, implying total consideration of $5.2741 per Vault share and valuing Vault at $5.6 billion.
Genesis shareholders would own 59.8% of the enlarged Genesis Group and Vault shareholders would own the remaining 40.2% on a fully diluted basis.
As reported, the bidding war for Vault follows Regis Resources (ASX:RRL) and Vault’s proposal to merge in May, creating the third-largest gold producer on the ASX.
Both companies backed this former deal in May, however the Australian Financial Review reports the new binding takeover proposal from Genesis to be “superior” to the existing deal, valuing the gold miner at $5.6 billion.
Shooting lower
The top five declines on the ASX yesterday included Elevra Lithium (ASX:ELV) and Liontown (ASX:LTR), along with major bidder Genesis.
Genesis dropped 4.29% on the bourse in the last trading session, with shares trading at $6.02 each after the news.
The company maintains a market capitalisation of $7.36 billion with 12.73 million shares being traded.
Elevra Lithium, on the other hand, declined 4.07% to trade at $10.12. The company has a market capitalisation of $2.04 billion with 752,097 shares being traded.
Finally, Liontown dropped 3.08% with shares trading at $1.65 each. The company has a market capitalisation of $5.42 billion with 22.83 million shares being traded.
By the end of trading yesterday, the ASX had lost 16.50 points, bringing the platform down to a total of 8,827.90 points.
The index is virtually unchanged over the last five trading sessions, sitting 4.07% below its 52-week high.
The materials sector dropped 0.63% in yesterday’s trading.
Write to Maddison Elliott at Mining.com.au
Images: Krakatoa Resources
