Krakatoa Resources Shares Surge Over 22% Following Strategic Acquisition News

December 09, 2024 11:46 AM AEDT | By Team Kalkine Media
 Krakatoa Resources Shares Surge Over 22% Following Strategic Acquisition News
Image source: shutterstock

Highlights

  • Acquisition Announcement: Krakatoa Resources secures an exclusive option to acquire up to 80% of the Zopkhito Antimony and Gold Project in Georgia.
  • Significant Resource Potential: Foreign estimates indicate 225,000 tonnes of antimony at 11.6% grade and 7.1 million tonnes of gold at 3.7 g/t.
  • Investor Confidence: Share price surged over 22%, reaching 1.4 cents during early trading on December 9.
  • Fundraising Success: $1.28 million raised via placement, with $100k contributed by company directors (subject to shareholder approval).

Krakatoa Resources Limited (ASX:KTA) announced a binding agreement with JSC Caucasus Minerals (JSCCM) to acquire up to an 80% interest in the Zopkhito Antimony and Gold Project, marking a significant milestone for the company. The project, located in the Racha region of Georgia, is considered globally significant for its high-grade antimony and gold resources.

Key Project Highlights

  • Antimony Resource: 225,000 tonnes at 11.6% Sb, equivalent to 26,000 tonnes of contained antimony.

  • Gold Resource: 7.1 million tonnes at 3.7 g/t, yielding an estimated 815,119 ounces of gold.

  • Exploration History:

    • 27 kilometers of exploration tunnels have outlined substantial mineralization.
    • Only 16 out of 60+ known mineralized veins have been studied, presenting considerable upside for further exploration.
    • Continuity of veins extends up to 1 km, with geophysical surveys confirming that the system remains open.
  • Recent Results:

    • Channel sampling in 2019 confirmed high-grade antimony of 10.4% over 0.98 meters.
    • Metallurgical test work in 2018 achieved a 56% antimony concentrate with optimization potential.

Strategic Significance

Antimony, a critical mineral used in energy storage, flame retardants, and military applications, is listed as a critical commodity by many nations. The acquisition aligns Krakatoa with global efforts to secure sustainable sources of this essential resource.

The project’s gold resource further strengthens its value, adding a robust economic component to the Zopkhito project.

Funding and Market Impact

To support this acquisition and ongoing exploration, Krakatoa raised $1.28 million in a placement. Company directors contributed $100,000 (subject to shareholder approval), underscoring confidence in the project’s potential.

The announcement sparked a 22% surge in Krakatoa’s share price, reflecting strong investor interest in this transformational opportunity.

Next Steps

Krakatoa plans to focus on advancing exploration and optimizing the resource potential of Zopkhito. The company is also preparing to explore unexplored veins and conduct further geophysical studies to expand the resource estimate.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.