Krakatoa Resources Ltd (ASX:KTA, LSE:, AIM:) has secured firm commitments to raise $1.6 million through a strongly supported placement, giving the company fresh funding to advance its 2026 exploration program at the Zopkhito Antimony-Gold Project in Georgia.
The placement will see Krakatoa issue about 400 million new fully paid ordinary shares at $0.004 per share to new and existing wholesale and sophisticated investors.
Subject to shareholder approval, participants will also receive one free-attaching unquoted option for every four new shares subscribed for, exercisable at $0.01 and expiring on September 29, 2028.
Funding exploration push
Krakatoa's proceeds would support the recently commenced 2026 work program at Zopkhito, where surface and underground core sampling drilling is now underway.
The planned work includes resource definition drilling, underground panel and bulk sampling, metallurgical optimisation, preliminary mining studies and environmental baseline and permitting activities. General working capital will also be funded from the placement.
Zopkhito currently hosts a foreign resource estimate of 225,000 tonnes at 11.6% antimony for 26,000 tonnes of contained antimony, along with 7.1 million tonnes at 3.7 g/t gold for 815,119 ounces of gold.
Building toward JORC resource
Executive chairman Colin Locke said the placement would allow Krakatoa to progress a program focused on resource definition drilling, metallurgical work and preliminary mining studies.
He said the program was designed to support conversion of the current foreign resource estimate into a JORC 2012 mineral resource estimate and represented Krakatoa’s second exploration season at Zopkhito following validation of historical data across the system in 2025.
Placement details
The new shares will be issued using Krakatoa’s pre-approved placement capacity and will rank equally with existing ordinary shares. Lodge Partners acted as lead manager and will receive a 6% fee on funds raised, as well as 100 million unquoted options on the same terms as the placement options.
The placement options and lead manager options remain subject to shareholder approval at an upcoming general meeting.
Settlement of the new shares is scheduled for July 9, 2026, with ASX quotation expected on July 10. Krakatoa anticipates holding a general meeting on August 21, 2026, to seek approval for the placement options and lead manager options.
