What's Happening?
Krakatoa Resources (ASX:KTA) has announced a capital raise of $3.1 million to support ongoing drilling at its Zopkhito Antimony-Gold Project in Georgia. The company plans to issue 295.24 million shares at $0.0105 per share, representing about 38% of its shares on issue. The capital raise is managed by Ignite Equity and GBA Capital, who will receive a 6% fee and 90 million options. The funds will be used to complete a planned 7,000m to 10,000m of maiden drilling, with the aim of converting and expanding the current foreign resource into a JORC-compliant mineral resource.
Why It's Important?
This capital raise is crucial for Krakatoa Resources as it seeks to advance its exploration efforts at the Zopkhito Project. The project is significant due to its focus on antimony, a critical metal with a skewed resource endowment distribution. The successful conversion of resources into a JORC-compliant mineral resource could enhance the company's valuation and attract further investment. Additionally, the project contributes to the global supply of antimony, which is essential for various industrial applications.
What's Next?
Krakatoa Resources plans to continue its drilling program with two rigs actively working at the site. The company anticipates delivering consistent updates on drilling progress and resource conversion in the coming months. Shareholders will meet to discuss placement approvals at a general meeting scheduled for October 31. The outcome of this meeting will determine the next steps in the company's exploration and development strategy.
