Krakatoa Resources Ltd (ASX:KTA) is set to put $3.1 million in the bank through a two-tranche placement to accelerate drilling at its Zopkhito Antimony-Gold Project in Georgia. The placement, strongly supported by institutional and sophisticated investors, will issue new shares at A$0.0105 each with one attaching option for every two shares, exercisable at A$0.02.
Funds raised will support the ongoing 7,000–10,000-metre maiden drilling program, targeting both antimony and gold systems, while progressing conversion of the foreign resource into a JORC-compliant estimate.
The Zopkhito drilling program includes in-adit work on high-grade antimony veins and gold alteration zones. Capital will also support the resource conversion process, preliminary economic studies and general corporate needs.
Zopkhito hosts a foreign estimate of 225,000 tonnes at 11.6% antimony for 26,000 tonnes contained, and 7.1 million tonnes at 3.7 grams per tonne gold for 815,119 ounces.
Executive chairman Colin Locke said the placement equips Krakatoa to deliver on its 2025 drilling plans.
“This successful placement provides Krakatoa with the capital required to complete our 2025 drilling plans at the Zopkhito Project in Georgia. With two rigs now actively drilling, the program is designed to convert and expand the current foreign resource into a JORC-compliant Mineral Resource. We would like to welcome the new shareholders on to the register and thank existing shareholders for their ongoing support.”
Placement structure
The placement will issue 295,238,095 new shares, equal to about 38% of Krakatoa’s current capital. Tranche 1, using Listing Rule 7.1 and 7.1A capacity, will raise A$1.995 million, while Tranche 2 — subject to shareholder approval — will raise A$1.105 million.
Directors plan to participate in Tranche 2 with 5 million shares.
Ignite Equity and GBA Capital acted as joint lead managers and will receive a 6% fee plus 90 million options, subject to approval. Quotation of both placement and lead manager options will be sought.
Indicative timetable
Tranche 1 settlement is scheduled for September 17, 2025, with quotation on September 18. A general meeting on October 31, will seek approval for Tranche 2, the issue of attaching and lead manager options, and director participation.
