A Flick Through Krakatoa Resources’ A-Team

An emerging mineral explorer, Krakatoa Resources Limited (ASX: KTA) is focused on becoming a prominent electrical energy and technology metals company. Through its recently acquired highly prospective Mt Clere Rare Earth Project, the company has expressed clear intentions of becoming a leading REE producer.

REE, a crucial element used in the production of various high-performance magnets, catalysts, alloys, glasses, electronics and many more products, currently has a strong demand all around the globe. Due to the current trade war between China and the US, it is expected that the prices of REE will rise in the future as the total supply of REE from China has decreased. The reduction of REE export from China has opened new doors for companies like Krakatoa, which own REE Project outside China.

Under the management of Krakatoa’s Board, the company is advancing rapidly to become a prominent REE producer. Krakatoa’s Board constitutes well-seasoned industry veterans, who are focused on taking the company towards its operational goals.

Board of Directors:

Colin Locke (Executive Chairman) – Highly experienced Mr. Colin Locke has been Krakatoa’s Executive Chairman since 2015. Mr. Locke has over 30 years of extensive experience, which includes working in the mining industry processing base and precious metals as well as in the Australian commodity broking firm. Mr. Locke is also the Founder of the boutique Australian financial services firm, CK Locke & Partners, where he held the position of MD for 11 years, starting from the year 1999 until 2010. Additionally, Mr. Locke founded the company, Western Mining Network Ltd, which is now called as European Cobalt, EUC, where he worked as Executive Director from the year 2010 to 2012.

Timothy Hogan (Non-Executive Director) – Mr. Timothy Hogan has significant experience in providing corporate and execution services to various corporate and private clients. His extensive experience in Australian stockbroking industry is adding great value to the company’s Board. In his 25 years of experience, Mr. Hogan has developed many contacts throughout the industry, which can be useful to Krakatoa Resources. As someone who has helped companies in their initial raising and flotation on the ASX, Tim is a valuable member of the company’s Board.

David Palumbo (Non-Executive Director) – Mr. David Palumbo is currently serving as a Company Secretary as well as Krakatoa's Principal Corporate Advisor. David is an experienced Chartered Accountant with expertise in financial accounting services, corporate compliance as well as statutory reporting. Mr. Palumbo has more than ten years of experience in the accounting and financial reporting of public and private companies, making him a valuable member of Krakatoa’s Board.

Agenda for Next General Meeting GM: The company is soon going to conduct its Annual General Meeting on 16th August 2019 at 10.00am (WST). The meeting will be held at Level 11, 216 St Georges Terrace, Perth, Western Australia.

At the meeting, the company’s shareholders will be voting for the following resolutions:

Resolution 1 – Ratification of Prior Issues of Shares

Resolution 2 – Approval to Issue Placement Options

Resolution 3 – Approval to Issue Placement Options to Directors

Resolution 4 – Section 195 Approval

With regards to the second resolution regarding the approval to issue Placement Options, the company advised that it is taking approval to conduct a placement to raise around $75,000 through an offer of 1 Placement Option for every 1 option currently on issue and for the option, which expired on 31st May 2019.

The company has proposed a subscription price of $0.001 for placement options. The options will have an expiry date of 31st July 2021 and will be exercisable at $0.05 each. The company will utilize the raised funds to pay for the costs of the offer and for general working capital purposes.

In June 2019, the company completed a capital raising, with an intention to use the proceeds for the exploration activities on the company’s existing projects, particularly for Mt Clere Rare Earth Project.

Overview of Mt Clere Rare Earth Project - In June 2019, Krakatoa Resources acquired 100% interest in the Mt Clere Rare Earth Project, prospective of various rare earth element (REE) deposit styles, including Monazite sands in vast alluvial terraces, Chinese-type ion adsorption clays in extensive laterite areas and Carbonatite dyke swarms. With the fresh license application (E52/3722), the company now holds 556km² of the area within Gascoyne Region of Western Australia.

Mt Clere REE Project (Source: Company reports)

Significance of Mt Clere Rare Earth Project - The Board’s decision to acquire Mt Clere Rare Earth Project has come at a time where REE demand and prices both are expected to rise in the near future. Due to the increasing use of REE, particularly in electronics and high performing magnets, the demand for REE is going to on an upward trajectory.

Majority of REE is currently being exported from China. In the current China-US trade war, China recently decreased its export of REE to the US, which is a major importer of REE. This has greatly changed the dimensions of the current REE market. The gap between supply and demand of REE is providing opportunities for other REE producers to gain from this scenario and enjoy the benefits of increased demand as well as increased prices.

At market close on 23rd July 2019, KTA’s shares were trading at $0.024, with a market capitalization of $3.38 million.