$20 Million Placement Backs Accelerated Drilling at Kaoko Metals’ Chalkos Project

Institutional Support Fuels Exploration Push

Kaoko Metals (ASX:KAO) has secured a $20 million institutional-led placement priced at $2.20 per share, representing a 12% discount to its last close and a notable 20% premium to its recent 15-day VWAP. The capital raise attracted strong backing from both new and existing global long-only institutional investors, underscoring growing confidence in the company’s early drilling results at its flagship Chalkos Copper-Silver Project.

Accelerating Diamond Drilling with a Second Rig

The fresh funds will enable Kaoko to significantly accelerate its diamond drilling program at the Otniel and Donkey Hill prospects within Chalkos by mobilising a second drill rig. This expansion aims to build on recent observations of extensive visible copper mineralisation in initial drill holes, which have sparked optimism about the project's potential. The company plans to ramp up drilling metres substantially, aiming to test mineralisation continuity and structural controls across its 400km² licence area.

Broader Exploration and Geophysics Across Projects

Beyond drilling, the placement proceeds will fund expanded fieldwork including detailed mapping, geochemical sampling, and geophysics to generate new drill targets across the broader Chalkos tenure. Concurrently, Kaoko will advance exploration at its Karibib Gold-Copper-Tungsten Project by progressing geophysical surveys and preparing for a maiden drilling campaign. The Karibib project, where Kaoko is earning up to an 85% interest, lies within the prolific Damara Belt and hosts known high-grade mineralisation.

Strengthened Financial Position and Share Structure

Following the placement, Kaoko Metals will have approximately 69.7 million shares on issue and over $24 million in cash reserves before costs. The new shares will be issued under ASX Listing Rules without shareholder approval, with settlement expected mid-September and trading commencing shortly after. The company’s Managing Director Gerard O’Donovan highlighted the quality of investor demand and the strategic importance of the funding to accelerate exploration efforts.

Exploration Early Days with Upside Potential

Kaoko remains in the early stages of understanding the vast potential of its Chalkos Project, where known mineralisation is just a fraction of the prospective landholding. The company’s systematic approach leverages modern exploration techniques to define and expand mineralisation while targeting new discoveries. The capital raise positions Kaoko to test multiple targets and scale its resource base in Namibia’s underexplored copper and precious metals belts.