Traka Raises $2.5M via Two-Tranche Placement with Free Attaching Options
Traka Resources has announced a $2.5 million capital raise through a two-tranche placement, alongside significant board and executive changes that could reshape its strategic direction.
- Placement to raise approximately $2.5 million via two tranches
- Shares priced at $0.0007 with free attaching options exercisable at $0.0025
- Second tranche subject to shareholder approval at September meeting
- Board changes include resignation of two directors and CEO, appointment of new Non-Executive Chair and director
- Funds earmarked for exploration, working capital, and strategic opportunities
Capital Raise Details
Traka Resources Limited (ASX, TKL) has moved swiftly to bolster its financial position with a placement aimed at raising approximately $2.5 million before costs. The capital raise is structured in two tranches, the first tranche, completed under existing placement capacity, will issue nearly 300 million shares to raise around $207,000. The second tranche, significantly larger at over 3.2 billion shares, is contingent on shareholder approval expected in mid-September.
Shares are being offered at a modest price of $0.0007 each, accompanied by free attaching options at a strike price of $0.0025, exercisable over four years. This structure offers investors potential upside while providing the company with immediate capital to advance its objectives.
Strategic Use of Funds
The funds raised will primarily support Traka’s ongoing exploration programs, a critical focus for a junior mining company seeking to expand its resource base. Additionally, the capital will shore up general working capital needs, ensuring operational flexibility. The company also signals an openness to pursue strategic opportunities, suggesting potential acquisitions or partnerships could be on the horizon.
Board and Leadership Changes
Alongside the capital raise, Traka Resources announced notable changes to its leadership team. Directors Harvey Kaplan and Joshua Gordon have resigned, as has CEO Stephen Lynn. Their departures mark a significant shift in governance and management.
In their place, Nicholas Katris has been appointed as Non-Executive Chair. Katris brings over 15 years of experience in corporate advisory and resource sector management, with a background as a Chartered Accountant and a track record spanning Australia, Africa, Brazil, and Canada. Timothy Morrison joins as a Non-Executive Director, bringing over two decades of expertise in capital markets and resource company funding. Both new appointees currently hold roles in other resource companies, indicating a strong network within the sector.
Market Implications and Next Steps
The placement was unbrokered, with capital raising fees payable to AFSL holders, including broker options on terms similar to the free attaching options. This approach may reflect a cost-conscious strategy amid market conditions.
Shareholders will soon receive a Notice of Meeting to approve the second tranche of the placement and the issue of options, a critical step for the company to secure the full $2.5 million. Investors will be watching closely for the outcome of this meeting and the company’s subsequent exploration updates, which will provide clearer signals on Traka’s growth trajectory under its refreshed leadership.
Bottom Line?
Traka’s capital raise and board overhaul set the stage for a pivotal phase; shareholder approval and exploration progress will be key to watch.
Questions in the middle?
- Will shareholders approve the second tranche and options at the upcoming meeting?
- How will the new board members influence Traka’s strategic direction and exploration focus?
- What specific strategic opportunities might the company pursue with the new capital?