Krakatoa Resources (ASX: KTA) has increased its Central Sulawesi gold exploration footprint by 203% with the acquisition of two exploration licences near the Krakatoa Donggala Project near Palu.
This increases the company’s holding in a highly prospective and under-explored gold province to 21,827 hectares from 7,200 hectares.
Notably, one of the licences is adjacent to the Donggala Project, allowing the company to continue its exploration for gold with the security that it holds a contiguous 162 square kilometre area covering the majority of the northern tip of the Donggala Peninsula.
Krakatoa has an exclusive 18 month right to acquire an 80% interest in PT Rio Jaya Persada, which holds the two licences, through payment of 600 million rupiah (A$55,996) within 15 working days after the memorandum of understanding is signed.
Subject to successful due diligence and early stage exploration, Krakatoa will pay a further 2.4 billion rupiah.
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