Capital Raising

Krakatoa Resources locks in $5m placement

Thu 21 Apr 22, 11:01am (AEST)
A drill rig in the Australian outback
Source: iStock

Stocks in article

kta
MktCap:
-

Share article

Key Points

  • Funds to continue rare earths project targeting nickel sulphides'
  • Allotment of placement shares to occur late April
  • Krakatoa Resources receives firm commitment for $5m to fast-track Mt. Clere exploration

Krakatoa Resources (ASX:KTA) has today confirmed its receipt of firm commitments from sophisticated investors for $5m by way of 50m ordinary shares at 10cps to fund its ongoing exploration works at Mt. Clere.

Drills in ground and papers on tables funded 

The funds will be used to continue works at the WA Mt. Clere site in the eastern Gascoyne where other players are currently exploring for lithium and other key materials. 

Earlier this month, the company announced it had executed 39 aircore hole drills which included 15 metres at 1,395ppm rare earth oxides from 16m and 1130pm at 12 metres.

It is conducting an ongoing assaying program at its Mt. Clere acreage, dubbed the ‘Tower’ project. Krakatoa shares doubled on the news earlier this month, and were up 4.17% an hour out from the open today.

Lead managers to receive 6% fee 

Alto capital acted as Lead Manager to the placement offer and shares offered will confirm with corporations act guidelines as well as ASX listing rule 7.1 

Krakatoa chairman Colin Locke expressed his thanks to Alto. 

“We wish to thank Alto Capital for their outstanding services,” Locke commented. 

“We also thank existing shareholders and new investors for strong support and confidence in our ability to further major discoveries.” 

Board confirms 5m options for chief Mark Major

The company adds today its Board has approved an issue of 5m options to CEO Mark Major with options exercisable at 15cps on or before November 29 2023.

KTA chart
Krakatoa's chart

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

Get the latest news and media direct to your inbox

Sign up FREE