Krakatoa Resources (ASX: KTA) will hit the ASX boards on Friday 28 December 2012 at 1pm (AEDT) after being admitted to the official list yesterday following a successful IPO.
The company’s prospectus offered 15 million shares at $0.20 to raise $3 million. Krakatoa will have around 16.5 million shares on issue when it begins trading.
The company has completed an option agreement to purchase an 80% 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 one of the exploration program will commence within a month of ASX listing.
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 two, 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 two years.
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