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Highlights
- Krakatoa Resources (KTA) explores a significant antimony-gold project in Georgia.
- The project includes a mining license with estimated antimony and gold reserves.
- Exploration funds and acquisition terms highlight project development plans.
Krakatoa Resources (ASX:KTA) has announced its exclusive option to acquire up to an 80% interest in the Zopkhito antimony and gold project in Georgia. This mining license covers a historically significant area, showcasing both antimony and gold mineralization, with substantial untapped potential.
The Zopkhito project has estimated resources of approximately 225,000 tonnes of material containing 11.6% antimony, translating to 26,000 tonnes of the mineral. Additionally, the project holds an estimated 7.1 million tonnes of material with a gold grade of 3.7 grams per tonne, equating to 815,119 ounces of gold. Despite previous exploration efforts identifying 60 or more mineralized veins, only 16 have been fully investigated, presenting a promising opportunity for further resource discovery.
Historical Exploration and Developments
Zopkhito’s exploration history dates back to 1929, during the Soviet era, when initial studies identified the site's potential. Activity continued under Soviet management until 1979, with subsequent dormancy following the collapse of the Soviet Union in 1989. Between 1998 and 2000, exploration resumed, leading to significant advancements by Eastern Mediterranean Resources, which acquired the deposit's rights.
Eastern Mediterranean Resources conducted a comprehensive re-sampling program and remodeled the vein systems, confirming the reliability of earlier Soviet-era reports. The findings included detailed resource estimates, reaffirming Zopkhito’s value.
Acquisition Agreement
Krakatoa Resources has secured the right to acquire up to an 80% interest within an initial 12-month option period, extendable by another year. During this time, Krakatoa intends to conduct exploration and assess development strategies for the project. The agreement involves a minimum commitment of $3.1 million towards exploration and development efforts.
The option fee comprises an initial payment of approximately $156,000, with an additional payment required to extend the option. To finalize the acquisition, Krakatoa must pay approximately $10.9 million. As part of the deal, 20 million shares and options will be issued as a facilitation fee, subject to shareholder approval.
Funding for Development
Krakatoa Resources plans to raise approximately $1.28 million through firm commitments from sophisticated investors. The capital will fund exploration at Zopkhito, cover the option period costs, and provide working capital for the project's development.
This acquisition underscores Krakatoa Resources’ focus on strategically significant assets in the global antimony and gold sectors. The Zopkhito project offers potential for resource expansion and further exploration success.
