Kaoko Metals raises $20m placement to accelerate drilling at Chalkos copper-silver project
Key Takeaways
- •Kaoko Metals raised $20 million by issuing approximately 9.1 million shares at $2.20 each to institutional and sophisticated investors.
- •The placement brings the company's cash reserves to more than $24 million before offer costs.
- •The funds will support mobilising a second diamond drill rig and expanded drilling at the Otniel and Donkey Hill prospects within the Chalkos Copper-Silver Project.
- •Exploration will also broaden across the roughly 400-square-kilometre Chalkos licence area using mapping, geochemical sampling and geophysical surveys.
- •Remaining capital will fund the Karibib Gold-Copper-Tungsten Project, where Kaoko is earning up to an 85% interest and plans geophysical work ahead of a possible maiden drilling campaign.
Kaoko Metals (ASX: KAO) has raised $20 million from a mix of new and existing institutional and sophisticated investors, providing the Namibia-focused explorer with funding to significantly scale up exploration at its flagship Chalkos Copper-Silver Project.
Under the placement, the company will issue approximately 9.1 million new shares at $2.20 each. Combined with existing funds, the proceeds lift Kaoko's cash reserves to more than $24 million before offer costs.
A central use of the new capital will be expanded drilling activity at Chalkos, where Kaoko intends to mobilise a second diamond drill rig and broaden testing at the priority Otniel and Donkey Hill prospects.
The raise follows what the company described as strong investor demand in response to early observations from its first diamond drilling at Otniel, announced last week.
Namibia is an established mining jurisdiction, with a mining industry that includes major uranium, gold and zinc operations, and the country has attracted growing exploration interest for copper and other battery- and energy-transition-related metals. The placement price of $2.20 per share represents a fresh injection of equity capital into an explorer at the early, resource-definition stage of project development, where drilling results typically shape the next phase of work.
Beyond the immediate drill targets, Kaoko plans to widen exploration across its roughly 400-square-kilometre Chalkos licence area. The programme is expected to include geological mapping, geochemical sampling and geophysical surveys designed to identify additional drill targets.
Managing director Gerard O'Donovan said the strong demand for the placement had brought several new long-term institutional investors onto the company's register and would enable Kaoko to increase drilling metres across Chalkos.
The remaining capital will fund exploration at Kaoko's Karibib Gold-Copper-Tungsten Project, where the company is earning up to an 85% interest. Geophysical work is planned over priority targets ahead of a maiden drilling campaign, subject to the results of initial exploration. Key milestones investors can watch include assay results from the expanded drilling at Otniel and Donkey Hill, and the outcome of the Karibib geophysical surveys in determining whether a maiden drilling campaign proceeds.
