Krakatoa Resources Raises AU$3.78 million for Lithium Project

Krakatoa Resources Limited (ASX: KTA) has successfully secured firm commitments to raise AU$3.78 million through a placement of 105 million shares at an issue price of AU$0.036 per share. The company plans to utilize the funds for exploration activities on its King Tamba Lithium Project, particularly focusing on drilling the newly discovered Wilson Prospect. The placement consists of two tranches: Tranche One, involving the issuance of 63 million shares, will be settled on or around July 18, 2023, utilizing the company's placement capacity under ASX Listing Rules.

Tranche Two, involving 42 million shares, is subject to shareholder approval and will be decided upon at a general meeting in mid-August 2023. CPS Capital Group Pty Ltd acted as the lead manager for the placement and will receive a fee of up to 6% of the funds raised. Subject to shareholder approval, CPS Capital will also receive 10 million unquoted options. Additionally, Krakatoa Resources has launched a non-renounceable entitlement offer, allowing eligible shareholders to raise approximately AU$1.01 million through the issuance of around 27.95 million new shares at the same price as the placement. The funds raised from both the placement and entitlement offer will be allocated towards the costs of the offers

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