Zopkhito Drilling Hinges on Shareholder Approval and Resource Upgrade
Krakatoa Resources secures $3.1 million in a two-tranche placement to fund a major drilling campaign aimed at converting its Zopkhito Antimony-Gold Project’s foreign resource estimate into a JORC-compliant Mineral Resource.
- Placement of 295 million shares at $0.0105 each with attaching options
- Funds to support 7,000–10,000m maiden drilling program at Zopkhito
- Drilling aims to convert foreign resource estimate to JORC-compliant status
- Second tranche and director participation subject to shareholder approval
- Lead managers to receive options and fees, pending shareholder approval
Capital Raise to Accelerate Drilling
Krakatoa Resources Limited (ASX, KTA) has announced a firm commitment to raise approximately $3.1 million through a two-tranche placement of nearly 295 million new shares priced at 1.05 cents each. This capital injection is earmarked to advance the company’s maiden drilling program at its Zopkhito Antimony-Gold Project located in Georgia.
The placement includes attaching options exercisable at 2 cents, expiring in 2028, offered at a ratio of one option for every two shares subscribed. While the first tranche has been completed under existing placement capacity, the second tranche and director participation require shareholder approval, expected at a general meeting around the end of October 2025.
Drilling Program and Resource Upgrade
The funds will primarily support a substantial 7,000 to 10,000 metre drilling campaign, currently underway with two rigs operating simultaneously. The objective is to convert the existing foreign resource estimate, which includes 225,000 tonnes at 11.6% antimony and over 800,000 ounces of gold, into a JORC-compliant Mineral Resource. Achieving JORC compliance is a critical step for Krakatoa, as it provides a recognized and transparent standard for resource reporting, essential for attracting further investment and advancing project development.
Additional drilling will target high-grade antimony veins and gold alteration systems within the project area. The company also plans to commence preliminary economic assessment work, laying the groundwork for future feasibility studies.
Strategic and Market Implications
Executive Chairman Colin Locke expressed confidence that the placement would provide the necessary capital to meet the company’s 2025 drilling objectives. He welcomed new investors and thanked existing shareholders for their support, highlighting the potential for consistent news flow as drilling results and resource updates emerge.
Ignite Equity Pty Ltd and GBA Capital Pty Ltd acted as joint lead managers for the placement, receiving a 6% fee and options subject to shareholder approval. The issuance of these options and the placement’s success signal strong market interest in Krakatoa’s exploration prospects.
However, it is important to note that the current resource estimate is classified as a foreign estimate and has not yet been verified under the JORC Code 2012 standards. There remains uncertainty whether the drilling and evaluation will confirm the resource to JORC standards, which will be a key focus for investors watching the project’s progress.
Bottom Line?
Krakatoa’s $3.1 million raise sets the stage for a pivotal drilling phase that could redefine the value of its Zopkhito project.
Questions in the middle?
- Will the drilling results confirm and expand the current foreign resource estimate to JORC standards?
- How will shareholder approval outcomes impact the timing and scale of the second tranche and director participation?
- What preliminary economic assessment findings might emerge, and how will they influence project development plans?
