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- Deal restructured to direct capital into the ground
- Staged earn-in for up to 80% ownership while preserving cash for exploration
- Upfront cost and dilution risk significantly reduced
- Exploration program for 2026 targeting resource drilling
Krakatoa Resources (ASX: KTA) has executed a deed to amend and restate an Zopkhito option term sheet to enhance a capital-efficient pathway to acquire up to an 80% interest in the antimony-gold project.
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CEO, Mark Major, said the amended option term sheet with JSC Caucasus Minerals materially improves the commercial structure of the transaction originally announced on 9 December 2024, by changing from upfront acquisition payments to staged investment in the Zopkhito antimony-gold project.
“Restructuring the deal to acquire an 80% interest via staged investment in the Zopkhito project, is a key milestone for Krakatoa, enabling us to focus our investment on development on the ground, rather than initial acquisition expenses.
“Importantly, it reflects the changes in the global political and supply environment over the past 18 months, particularly the increasing strategic importance of antimony. These changes now position us to create value more efficiently at Zopkhito, while maintaining a clear pathway to increased ownership.”
Zopkhito is held under an existing exploration-mining license which is valid until March 2042. Discovered in 1929, it was explored by the Soviet government until 1979, with additional exploration undertaken between 2006-2019.
Zopkhito contains a foreign resource estimate of 225,000 tonnes at 11.6% antimony for a contained 26,000 tonnes of antimony and 7.1 million tonnes (Mt) at 3.7 grams per tonne (g/t) for 815,119 ounces of gold.
In 2025, Krakatoa’s exploration strategy at Zopkhito was to target areas between the historical adits where sampling demonstrated high-grade mineralisation.
Mr Major said drill testing of these areas aimed to confirm mineralisation beyond the adits and clarify the extent of the gold alteration system, as well as the high-grade quartz-antimony vein development.
Drilling successfully intersected mineralisation across multiple target zones, providing strong geological validation of the historical model.
KTA is steady 0.7¢. Mkt cap $8.485M.
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