Kaoko Metals (ASX: KAO) has secured firm commitments for a $20 million placement to accelerate diamond drilling at its Chalkos Copper-Silver Project in Namibia.
The company will issue approximately 9.1 million shares at $2.20 each, taking its cash balance to more than $24 million before costs.
The funding will enable Kaoko to mobilise a second diamond drill rig and expand drilling at the Otniel and Donkey Hill prospects. It will also support mapping, geochemical sampling and geophysical work across the 400 km² Chalkos licence area.
Managing Director Gerard O’Donovan said strong investor demand followed encouraging early observations from the first diamond holes drilled at Otniel.
Kaoko will also conduct geophysical work at its Karibib Gold-Copper-Tungsten Project ahead of a proposed maiden drilling programme.
Settlement of the placement is expected on 14 September, with trading in the new shares scheduled to begin on 15 September.
