- Traka Resources (TKL) enters a trading halt regarding a proposed capital raise
- The company ended the December quarter with $809,000 in cash and less than one quarter of available funding after burning through $971,000 on operating activities
- Traka said it spent more than usual in that quarter due to completing a major drilling program at the Mt Cattlin project and expects spending levels to reduce
- However, the company flagged that it will assess future cash needs and seek to raise funds if it becomes appropriate
- The company expects to come out of the trading halt by February 14 and shares last traded at 1.5 cents on February 8
Traka Resources (TKL) has entered a trading halt prior to market open on Thursday, February 10.
The company said the trading halt is in relation to an upcoming capital raise but details on how much it will raise and how it will spend the funds are yet to be announced.
Newsflow has been light so far this year, with Traka’s most recent announcement being its quarterly report for the three months ending December 31 2021.
The company completed almost 5000 metres of drilling at the Mt Cattlin gold-copper project in December.
Traka said it plans to undertake follow-up drilling which is expected to be larger than the one recently completed due to the scale of known mineralisation. No further details regarding planned exploration have been set in stone.
The materials stock burnt through $971,000 on operating activities which primarily went towards exploration. It ended the quarter with just $809,000 in cash and less than one quarter of available funding should spending levels remain the same.
When responding to its cash position, Traka Resources said the expenditure was higher than usual due to the drilling program. It therefore said it doesn’t expect to spend that much cash in the current quarter and believes it will have enough funding.
In saying that, Traka stated it would “assess its future cash needs during that time and seek to raise funds as and when appropriate.”
The company expects to come out of the trading halt by February 14.
Shares last traded at 1.5 cents on February 8.