Krakatoa Resources (ASX: KTA) will soon begin a gold hunt in Indonesia with funding from an IPO.
The prospectus is offering 15 million shares at $0.20 to raise $3 million, and is expected to close next Friday on the 9th November.
Krakatoa entered into a binding heads of agreement earlier in the year to purchase an interest in a project comprised of one granted exploration IUP licence, which is located 20 kilometres north-west of Palu, in the Central Sulawesi Province.
The Donggala Project covers 7,200 hectares and is strategically located in close proximity to existing gold projects with JORC Resources.
Highlighting the prospectivity of the project - there are multiple historical and current artisanal workings spanning several kilometres.
There has been no systematic exploration carried out on the tenement and any of its indicated mineral occurrences. Krakatoa plans to be the first company to utilise best practice exploration techniques to explore the mineral indications on the tenement.
Exploration targets JORC Resource
Phase 1 of the exploration program will commence within a month of ASX listing, which is currently expected before the end of 2012.
Once detailed mapping has been completed a soil sampling program using MMI Technology, trenching and diamond drilling will be conducted.
There is already a plan for Phase 2 - which will include infill drilling with the aim of delineating a JORC Resource estimate by the end of the first year.
Worth noting is that Krakatoa is well positioned to secure additional tenements in Central Sulawesi, with the company outlining that during the next six months they will look to identify other tenements with potential.
The total exploration budget is $1.5 million over 2 years.
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