Krakatoa Resources Ltd (ASX:KTA) has secured firm commitments for a $2.4 million placement to fund its initial 10% interest in the Zopkhito Antimony-Gold Project in Georgia and accelerate drilling and development work during 2026.
The company will issue about 400 million new shares at $0.006 each, with the placement anchored by a $1.8 million investment from Hong Kong-based private investor Hui Ling.
Investors will also receive 1 free-attaching unlisted option for every 4 shares subscribed for, exercisable at $0.01 and expiring on September 29, 2028, subject to shareholder approval.
The issue price represents a 14.3% discount to Krakatoa’s last closing price of $0.007 and a 10.4% discount to its 15-day volume-weighted average price of $0.0067.
Funding initial Zopkhito ownership
Krakatoa’s wholly owned Georgian subsidiary will use US$875,000 of the proceeds to acquire its first 10% interest in Zopkhito under a staged earn-in structure that gives the company a pathway to increase its ownership to as much as 80%.
The remaining funds will support the company’s 2026 work program, including resource definition drilling, underground in-adit drilling, bulk sampling, JORC-compliant metallurgical test work, preliminary mining studies and environmental baseline and permitting activities.
Executive chair Colin Locke said the funding would allow Krakatoa to advance both the earn-in and its resource definition program.
“Our current drilling aims to validate the historical mineralisation model, as we work towards delivering a maiden JORC-compliant Mineral Resource Estimate,” he said.
“The proceeds of the Placement will also provide funding to advance our 2026 work program, which includes ongoing surface and underground drilling, metallurgical test work, investigating discovery potential of copper and tungsten on the property and preliminary development studies.”
Zopkhito hosts substantial foreign resource estimate
Zopkhito hosts a foreign resource estimate of 225,000 tonnes at 11.6% antimony for 26,000 tonnes of contained antimony, together with 7.1 million tonnes at 3.7 g/t gold for 815,119 ounces.
The estimates are not reported in accordance with the JORC Code 2012 and Krakatoa cautions that sufficient work has not yet been completed to classify them as a JORC-compliant Mineral Resource.
Current exploration is designed to validate the historical mineralisation model and support a maiden JORC 2012 Mineral Resource Estimate, alongside preliminary mining and broader project development studies.
