Krakatoa Resources Ltd (ASX:KTA) Ltd has secured firm commitments to raise A$1.3 million before costs via a placement to fund a maiden diamond drilling campaign at its Zopkhito Antimony-Gold Project in Georgia. The funds will underpin a 7,000–10,000-metre drill program, targeted adit drilling, and geophysical surveys aimed at verifying and expanding a foreign resource estimate of 26,000 tonnes of antimony (Sb) and 815,119 ounces of gold (Au).
Placement terms include 124 million shares at 1.05 cents each, with attaching unquoted options (one for every two shares) exercisable at 2 cents, expiring September 30, 2026. Board members will participate in the raise, pending shareholder approval.
Executive chairman Colin Locke said the raise reflects growing recognition of Zopkhito’s potential, adding, “It is an exciting time for the company... this marks a key step forward for our aim of converting the current foreign antimony and gold resource into a JORC-compliant resource.”
Funding use and exploration program
The money raised will fund Krakatoa’s inaugural diamond drilling program at Zopkhito, beginning in July.
The 7,000–10,000-metre campaign aims to verify historic data and support conversion of the project’s foreign resource to a JORC-compliant classification.
Additional adit drilling will target high-grade antimony veins and associated gold mineralisation in footwall and hanging wall zones.
Planned geophysical surveys will assist in detecting potential resource extensions. Funds will also cover corporate, administrative and offer-related costs.
Placement structure and board participation
The placement comprises 124 million ordinary shares at an issue price of A$0.0105, raising A$1,302,000 before costs.
Each two placement shares will carry one unquoted option exercisable at A$0.02, expiring September 30, 2026.
The allotment of shares to unrelated parties is expected on or around June 25, 2025. Directors intend to subscribe for 3 million shares and 1.5 million options, subject to shareholder approval at a general meeting scheduled for late July.
A 6% capital raising fee applies to the funds secured.
Strategic rationale for Zopkhito
Located in northern Georgia’s Racha region, Zopkhito spans 1,779 hectares and lies 170 kilometres from Kutaisi, with road and rail access to Black Sea ports.
The project’s historical foreign estimate, classified under the Soviet GKZ system, includes 225,000 tonnes at 11.6% Sb and 7.1 million tonnes at 3.7 grams per tonne Au.
Georgia offers duty-free access to 2.8 billion consumers through its robust trade agreements and ranks highly in global ease-of-business indices, reinforcing its appeal for mineral exploration and development ventures.