Krakatoa Resources Ltd (ASX:KTA) has received firm commitments to raise $1.6 million through a new share placement to advance an expanded drilling campaign at the wholly-owned King Tamba Project in Western Australia.
The ASX-lister said last week it was time to take an aggressive approach in the search for lithium after an initial 1,800-metre reverse circulation drilling program intersected thick, continuous pegmatites, including a flat-lying blind pegmatite up to 39 metres thick underneath a 4.3% Li2O rock chip at the Wilsons prospect.
About 37.2 million ordinary shares at $0.043 each will be issued under the placement.
READ: Krakatoa Resources expands King Tamba drilling campaign; shares higher
Drilling partner Topdrill participated in the fundraising, committing $600,000 in drilling equity, which is subject to six-month voluntary escrow from issue.
Krakatoa will pay a 6% capital raising fee on the funds raised, excluding the drill equity from Topdrill.
The amount raised, before cost, will also be used for working capital as well as to defray the cost incurred on the placement.
A show of support
“We thank investors for their continued support and welcome new shareholders to our registry,” executive chairman Colin Locke said.
“Our drilling partners, Topdrill, have demonstrated their confidence in the project by drilling for equity.”
The placement shares will be allotted on or about December 6, 2023, under the company’s existing capacity.