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Kaoko Metals (ASX: KAO) has secured $20 million from a mix of new and existing institutional and sophisticated investors, giving the Namibia focused explorer the funding to significantly ramp up exploration at its flagship Chalkos Copper-Silver Project.
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The placement will see the company issue approximately 9.1 million new shares at $2.20 each, with the proceeds taking Kaoko’s cash reserves to more than $24 million before offer costs when combined with existing funds.
A major focus of the fresh capital will be increasing drilling activity at Chalkos, where Kaoko plans to bring in a second diamond drill rig and expand testing at the priority Otniel and Donkey Hill prospects.
The funding follows what the company described as strong investor demand after early observations from its first diamond drilling at Otniel, announced last week.
Kaoko also plans to broaden exploration beyond the immediate drill targets across its roughly 400-square-kilometre Chalkos licence area. The program is expected to incorporate geological mapping, geochemical sampling and geophysical work aimed at identifying additional targets for drilling.
Managing director Gerard O’Donovan said the strong demand for the placement had brought several new long-term institutional investors onto the company’s register and would allow Kaoko to increase drilling metres across Chalkos.
The remaining capital will support exploration at Kaoko’s Karibib Gold-Copper-Tungsten Project, where the company is earning up to an 85% interest. Geophysical work is planned over priority targets before a maiden drilling campaign, subject to the results of the initial exploration.
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