- Krakatoa Resources (KTA) raises $5 million from professional and sophisticated investors via a placement
- The company will issue 50 million new shares at an issue price of 10 cents per share
- The funds raised will primarily be used for continued exploration at its Mt Clere Rare Earths Project in the Gascoyne region of Western Australia
- Allotment of the placement shares is anticipated to occur on or about April 29
- KTA shares are up 4.17 per cent, trading at 12.5 cents
Krakatoa Resources (KTA) has raised $5 million from professional and sophisticated investors via a placement.
The company will issue 50 million new shares at an issue price of 10 cents per share.
The Board has also agreed to issue CEO Mark Major with five million unquoted options exercisable at 15 cents on or before November 29, 2023.
The funds raised will primarily be used for continued exploration at its Mt Clere Rare Earths Project in the Gascoyne region of Western Australia, focusing on exploration and resource drilling, assaying and metallurgical work as well as geophysical studies and data acquisition.
Funds will also be used on nickel sulphides drilling, tenure, heritage, corporate and admininistrative costs.
Krakatoa had recently announced its major clay hosted ionic rare earths discovery at its Mt Clere project, with results confirming significant and widespread clay hosted rare earth elements (REEs) mineralisation.
Some of the stand-out thick intersections from the Krakatoa’s recently completed 39-hole aircore program included 15 metres at 1395 parts per million (ppm) total rare earth oxides (TREO) from 16 metres and 12 metres at 1130ppm TREO from surface.
Alto Capital acted as Lead Manager to the placement and will receive a six per cent fee on all funds raised.
Allotment of the placement shares is anticipated to occur on or about April 29.
KTA shares were up 4.17 per cent, trading at 12.5 cents as of 1:31 pm AEST.