Krakatoa Raises $1.3M to Drill Zopkhito’s Antimony-Gold Riches

Capital Raising to Advance Exploration

Krakatoa Resources Limited (ASX, KTA) has announced a placement to raise approximately $1.3 million through the issuance of 124 million shares at 1.05 cents each. This capital injection is earmarked to fund an ambitious maiden diamond drilling campaign at the Zopkhito Antimony-Gold Project in Georgia, scheduled to commence in July 2025. The drilling program aims to complete between 7,000 and 10,000 metres of drilling, targeting high-grade antimony veins and gold-rich alteration zones.

Alongside the placement shares, the company proposes to issue attaching unquoted options exercisable at 2 cents, expiring in September 2026, subject to shareholder approval. The Board has expressed confidence in the project’s potential, with Executive Chairman Colin Locke highlighting the strong support from existing and new shareholders as a positive signal for the company’s prospects.

Zopkhito Project, Strategic Location and Resource Potential

The Zopkhito Project covers approximately 1,779 hectares in Georgia’s Racha region, a country strategically positioned as a gateway between Europe and Asia. The project benefits from proximity to rail infrastructure linking to Black Sea ports, facilitating potential export logistics. The foreign resource estimate for Zopkhito includes 225,000 tonnes at 11.6% antimony and 7.1 million tonnes at 3.7 grams per tonne gold, equating to over 815,000 ounces of gold. However, these estimates are not yet JORC-compliant, underscoring the importance of the upcoming drilling campaign to validate and upgrade the resource.

Antimony is a critical metal with diverse industrial and military applications, including use in solar panels, electronics, and flame retardants. Georgia’s investor-friendly environment, supported by free trade agreements with major economies, adds an attractive geopolitical dimension to the project’s development potential.

Risks and Governance

Krakatoa’s announcement includes a detailed risk disclosure, reflecting the inherent challenges of junior exploration companies operating in foreign jurisdictions. Key risks include capital requirements, sovereign and political risks in Georgia, operational uncertainties, environmental and climate-related factors, and commodity price volatility. The company also notes the need for shareholder approval for the attaching options and highlights the Board’s intention to participate in the placement, signaling alignment with shareholder interests.

The company cautions that the foreign resource estimate is not compliant with the JORC Code and that exploration outcomes may materially change the resource profile. Furthermore, the geopolitical and regulatory environment in Georgia, while currently stable and supportive, carries uncertainties that could impact project development.

Looking Ahead

The successful completion of the placement and the commencement of drilling mark critical milestones for Krakatoa. The results of the maiden drilling campaign will be pivotal in advancing the Zopkhito Project towards a JORC-compliant resource, a key step for attracting further investment and progressing towards potential development. Investors will be watching closely for updates on drilling progress and any shifts in the geopolitical landscape that could influence project timelines.