Krakatoa Resources Ltd (ASX:KTA) has received firm commitments to raise $560,000 (before costs) via a placement of 18,666,667 ordinary shares at an issue price of $0.03 per share.
The placement has been cornerstoned by the company’s two current substantial shareholders who have been long-term supporters of the board and management team.
Supporting rare earth exploration at Mt Clere
The funds raised will be used to support the continued exploration at the Mt Clere Rare Earths Project and for working capital.
Allotment of the placement shares should occur on or about April 28.
Shaw and Partners acted as broker to the placement.
Further capital-raising contemplated
Krakatoa plans to follow the placement with further capital-raising efforts in the form of an entitlement offer.
The funds raised from any follow-on capital raising will also be used to support the continued exploration at Mt Clere Rare Earths Project and King Tamba, as well as for working capital.
Krakatoa recently joined Proactive in the studio to talk about its plans for Mt Clere.
The company will release a further announcement setting out the details of any follow-on capital raising in the coming days.