- Krakatoa Resources Limited (KTA) has completed an oversubscribed placement raising $2,400,000.
- KTA received strong commitments from professional as well as sophisticated investors for its placement.
- KTA looks forward to advancing its projects in the Lachlan Fold Belt and pursue other project opportunities.
- Recently, KTA had substantially expanded its landholding in the Lachlan Fold Belt through direct license application made for the Rand Project.
Aggressive Gold explorer, Krakatoa Resources Limited (ASX:KTA) repositioned in 2019 with a focus on value-accretive gold acquisitions in the world-class Lachlan fold belt now has three projects covering 780km2 in the area.
The Company has been actively engaged in the development of its highly lucrative landholdings. Interestingly KTA has reached a significant milestone in its journey towards the advancement of its project portfolio.
KTA Concludes Significantly Oversubscribed Placement
KTA has concluded a share placement after receipt of firm commitments from professional and sophisticated investors. The Company has raised $2,400,000 (before costs) by way of issuing 30,000,000 ordinary shares at an issue price of 8 cents per share.
The Company witnessed an extremely strong demand for the placement, and the same was significantly oversubscribed.
The Company has been engaged in the development of its project portfolio, the funds raised through the placement will be allocated towards advancing the three projects in New South Wales’ Lachlan Fold Belt, including
- Drill programs at Turon and Belgravia (Sugarloaf Target Area),
- An IP Program at Belgravia (Bell Valley Target Area)
- Target generation including geophysical surveys across the Rand Project
In addition to this, the Company also seeks to pursue other project opportunities while meeting costs of the share issue and working capital requirements.
KTA alloted the shares on 15th July 2020 under the Company’s existing placement capacity as follows:
- 8,125,000 shares to be issued under the Company’s ASX Listing Rule 7.1 capacity
- 21,875,000 shares to be issued under the Company’s ASX Listing Rule 7.1A capacity
KTA Secures High-Grade Gold Mines
Recently, KTA secured Historic High-Grade Gold Mines in the Lachlan Fold by way of a direct license application made for the Rand Project covering four contiguous exploration licence applications over a total area of 580km2 in the Central Lachlan Fold Belt, NSW.
Historically collected rock chip samples during geological mapping returned strongly anomalous results, including Au (including 9.6ppm, 6.9ppm and 6.5ppm), Ag (to 31ppm), As (to 2410ppm), Bi (to 40ppm) and Pb (to 5100ppm).
KTA’s Plan on the Way Forward
Moving forward, KTA looks forward to continuing aggressive yet systematic exploration at the project areas and has a strong pipeline of work programs and share price catalysts in the coming months as activity concentrates on a systematic exploration of all Lachlan Fold Belt projects:
Proposed Work Programs & Pipeline of News Flow (Source: Company's Report)
Further, KTA seeks to obtain the exploration licence for the Rand Project within three to six months and the Company looks forward to undertaking a comprehensive review of the completed historical work and openly accessible datasets to generate targets for field reconnaissance.
On 20 July 2020, KTA stock was trading at $ 0.078 (AEST: 3:33 PM) with a market capitalisation of $ 19.9 million.