- Krakatoa Resources (KTA) taps investors for $3.78 million to fund fresh drilling at its King Tamba lithium project in Western Australia
- King Tamba has been proven to contain lithium assays up to the high-grade 4.3 per cent concentration
- Some funds will also go towards exploration and development at its Mt Clere rare earths project
- A share placement will be conducted alongside a separate non-renounceable entitlement offer to eligible shareholders
- Krakatoa shares are down 9.76 per cent, trading at 3.7 cents at 2:54 pm AEST
Krakatoa Resources (KTA) has tapped investors for $3.78 million to fund fresh drilling at its King Tamba lithium project in Western Australia.
Just this month, the company confirmed high-grade lithium at King Tamba. Reads were up to 4.3 per cent lithium oxide.
The company delivered an “impressive” mineral resource estimate for the project in March 2023.
Firm commitments for the funding have already been received.
The $3.78 million will be issued through a share placement of 105 million shares at 3.6 cents. This reflects a 22 per cent discount to the fifteen-day value-weighted price.
A secondary non-renounceable entitlement offer to eligible shareholders for a secondary $1.01 million will also be undertaken on the same terms as the placement. Under the placement, a second issuance of 42 million shares requires shareholder approval.
CPS Capital Group acted as Lead Manager to the placement, taking a 6 per cent fee.
Additional to King Tamba, KTA’s Mt. Clere rare earths project will also see both funding routes provide a cash boost.
“The company is looking forward to drilling the newly discovered Wilson prospect and unlocking the considerable potential at the King Tamba lithium project for shareholders,” Krakatoa Executive Chairman Colin Locke said.
“We would like to thank our lead manager CPS for their outstanding service and existing shareholders for their continued support as well as welcome our new shareholders to the register.”
Krakatoa shares were down 9.76 per cent, trading at 3.7 cents at 2:54 pm AEST.