Krakatoa Resources Ltd (ASX:KTA) has locked in firm commitments to raise $1.25 million before costs through a strongly supported placement, providing funding to advance work at its Zopkhito antimony-gold project in Georgia.
The placement will see the company issue 138,888,889 new fully paid shares at $0.009 per share to new and existing institutional and sophisticated investors. Subject to shareholder approval, participants will also receive one free-attaching option for every two shares subscribed for, with the options exercisable at $0.02 and expiring on September 29, 2028.
Ignite Equity and GBA Capital acted as joint lead managers to the placement, which represents around 13% of Krakatoa’s issued capital. Settlement is scheduled for February 9, 2026, with quotation of the new shares expected on February 10.
Funding Phase 2 drilling and technical work at Zopkhito
The money will be used to advance geological modelling and technical studies ahead of a Phase 2 drilling program at Zopkhito, which is scheduled to start in Q2 2026. The next phase of work is expected to include targeted surface and underground drilling designed to support resource growth and improve confidence in the historical foreign resource estimate.
Funds will also be allocated to exploration aimed at validating and converting the historical foreign resource into a JORC-compliant estimate, alongside the commencement of metallurgical studies to support future development assessments.
Moving forward at Mt Clere
In Australia, Krakatoa recently reported exploration activity across its 100%-owned Mt Clere Project on the northwestern margin of the Yilgarn Craton in Western Australia, including drilling at Stone Tank and ongoing studies at the Tower rare earths (REE) deposit, which the company has flagged as a key focus area.
The company has also completed a tenement rationalisation at Mt Clere, tightening its land position to concentrate on areas considered more prospective for REE, base metal and precious metal systems. As part of the review, Krakatoa said it has significantly reduced its northern Mt Clere landholding following five years of targeted exploration.
Read more: Krakatoa updates Mt Clere exploration, refocuses on Tower REE deposit
Big quarter hghlights work done
Krakatoa capped off a busy December 2025 quarter with high-grade gold and antimony hits from its Phase 1 program at the Zopkhito Antimony-Gold Project in Georgia, while extending the option period to support further resource definition work in 2026.
Work during the quarter focused on surface diamond drilling and underground in-adit sampling at Zopkhito, with assay results received after quarter end confirming strong gold and antimony mineralisation across multiple zones.
Read more: Krakatoa advances Zopkhito antimony-gold project with high-grade quarterly results