Krakatoa Raises $1.25M to Drive High-Grade Zopkhito Drilling Program
Krakatoa Resources has raised $1.25 million through a well-supported placement to fund the next phase of exploration at its high-grade Zopkhito Antimony-Gold Project, following promising drilling results that validate historic data.
- Placement raises $1.25 million at $0.009 per share with free attaching options
- Funds earmarked for Phase 2 drilling and metallurgical test work at Zopkhito
- Recent drilling confirms high-grade antimony and gold mineralisation
- Placement backed by institutional and sophisticated investors
- Resource estimate includes 225Kt at 11.6% antimony and 815,000 ounces of gold
Funding Boost for Zopkhito Exploration
Krakatoa Resources Limited (ASX – KTA) has successfully secured $1.25 million through a placement of nearly 139 million new shares priced at $0.009 each. The placement, supported by both new and existing institutional and sophisticated investors, includes free attaching options exercisable at $0.02, providing shareholders with additional upside potential. This capital injection is set to accelerate exploration activities at the company’s flagship Zopkhito Antimony-Gold Project.
Validating Historic High-Grade Mineralisation
Recent Phase 1 drilling results have confirmed the presence of high-grade antimony and gold mineralisation, effectively validating historic data that had long suggested significant resource potential. Zopkhito hosts a foreign resource estimate of 225,000 tonnes at 11.6% antimony, alongside 7.1 million tonnes grading 3.7 grams per tonne gold, equating to over 815,000 ounces of gold. While these estimates are not yet compliant with the JORC 2012 reporting standards, they provide a compelling foundation for further exploration and resource definition.
Advancing to Phase 2 Drilling and Metallurgical Studies
The funds raised will primarily support the upcoming Phase 2 drilling program scheduled for the second quarter of 2026. This phase will include targeted surface and underground drilling designed to expand and validate the resource base. Additionally, metallurgical test work will commence to better understand ore processing characteristics, a critical step toward future development. Krakatoa’s Executive Chairman, Colin Locke, emphasised the strong investor confidence following the recent drilling success and expressed optimism about advancing exploration plans throughout the year.
Strategic Placement and Shareholder Engagement
The placement represents approximately 13% of Krakatoa’s existing shares and will be issued under ASX Listing Rule 7.1, with shares ranking equally with existing ordinary shares. The company has engaged Ignite Capital and GBA Capital as joint lead managers, who will also receive options subject to shareholder approval. A general meeting is anticipated in March 2026 to approve these options, which will further align the interests of the managers with the company’s growth trajectory.
Looking Ahead
With the capital secured and exploration plans advancing, Krakatoa is poised to unlock further value from the Zopkhito project. The upcoming drilling results and metallurgical studies will be closely watched by investors eager to see how the foreign resource estimates translate into JORC-compliant resources and how this might impact the company’s valuation and development prospects.
Bottom Line?
Krakatoa’s $1.25 million raise sets the stage for a pivotal exploration phase that could redefine the Zopkhito project’s potential.
Questions in the middle?
- Will Phase 2 drilling convert foreign resource estimates into JORC-compliant resources?
- How will metallurgical test results influence future development plans?
- What impact will shareholder approval of placement options have on capital structure?
