Krakatoa Resources Ltd (ASX:KTA) has received firm commitments from professional and sophisticated investors to raise $5 million via a placement of 50 million ordinary shares at an issue price of $0.10 per share.
The funds raised will primarily be used for continued exploration at Mt Clere Rare Earths Project which includes exploration/resource drilling, assaying and metallurgical work.
Furthermore, the placement will also cover geophysical studies & data acquisition; nickel sulphides drilling; tenure, heritage; corporate and admin & offer costs.
“Strong support”
Commenting on the placement, Krakatoa chairman Colin Locke said: “We wish to thank our lead manager Alto Capital for their outstanding services associated with this placement.
“We also thank existing shareholders and new investors for their overwhelmingly strong support and confidence in our ability to make further major discoveries."
Placement summary
Allotment of the placement shares is anticipated to occur on or about April 29, 2022, under the company’s existing listing rules 7.1 and 7.1A capacity.
Alto Capital acted as lead manager to the placement.
Latest from Mt Clere
Krakatoa discovered widespread clay hosted ionic type rare earth elements (REEs) in the regolith at Mt Clere earlier this month.
The first batch of results from reconnaissance drilling geochemical analysis taken at the Tower prospect shows high levels of regolith hosted REEs, including significant enrichment in the magnetic elements, concentrated in the clay saprolite profiles.
Notably, the results show that mineralisation occurs from surface and is open, which "opens the door for the company to fast track a comprehensive infill and extensional drill program at Tower Prospect and reconnaissance drilling of other highly prospective areas,” Krakatoa CEO Mark Major said.