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The company has received firm commitments to raise $3.78 million through the issue of 105 million shares at $0.036 per share, known as the "Placement".
A non-renounceable entitlement offer to eligible shareholders to raise up to $1.01 million will be carried out on the same terms as the Placement.
The funds raised will be used for exploration and development of the company's King Tamba Lithium and Mt Clere Rare Earth projects, covering costs of the offers, corporate and administrative expenses and working capital.
Krakatoa Resources Limited carried out successful geochemical sampling at the King Tamba project in Western Australia, highlighting the potential for high-grade lithium discovery.
The sampling results showed Li 2O values in excess of 1%, with a peak of 4.3% from the newly identified Wilsons prospect, supporting the presence of a strong multi-element soil anomaly across several sample lines.
The Company has begun planning for a Reverse Circulation (RC) drilling program to continue investigating the area and uncover more potential lithium zones for exploration.