Krakatoa Resources

Financials:

Primary ticker: ASX:KTA
Stage of development: Exploration
Primary minerals: Rare Earth Elements, Ni, Cu and Gold
Project to promote: Mt Clere
Project location: Western Australia
Website: www.ktaresources.com

Krakatoa Resources Limited (ASX:KTA) is a diverse critical and precious metal company that is making metal discoveries for electrification, decarbonisation and defence applications.
 
Mt Clere: High Value Ionic Magnetic Rare Earths
In April 2022, KTA announced a major ionic clay hosted REE discovery at its Mt Clere property that is situated on the northern margins of the Yilgarn Craton in Western Australia. Resource drilling will ensue asap.
 
Heavy Mineral sands
According to previous explorers in including BHP (that were looking for diamonds 30 years ago), Mt Clere also contains vast alluvial fields of heavy mineral sands containing zircon, ilmenite, rutile, leucoxene, and monazite. Maiden reconnaissance drilling carried out in April.
 
Ni-Cu-Co-PGEs
In April, results of a VTEM survey identified several sizable discreet, late time geophysical signatures akin to Nova Bollinger and Julimar which were discovered on the south eastern margins of the Yilgarn Craton. KTA’s Mt Clere is located on the northern margins of same craton. Ground “moving loop” completed in April. Interpretations pending.
 
Dalga Tech & Critical Metals Project
Also in Western Australia, resource drilling will commence on KTA’s critical and tech metal project for Rubidium, Lithium, Tin, Tantalum and Niobium at and around a previous tantalum mine at Dalgaranga near Mt Magnet.
 

Cash: AUD$5800000
Debt: NIL

 

Major Shareholders:
HELMSDALE INVESTMENTS PTY LTD – 6.07%
MR LAFRAS LUITINGH – 5.45%
PETERS INVESTMENTS PTY LTD – 4.35%
CITICORP NOMINEES PTY LIMITED – 1.61%
NATIONAL NOMINEES LIMITED – 1.31%
Management Ownership – 5%

Management Profile

Mark Major – Chief Executive Officer
Mark Major is a qualified geologist with a Masters in Business Administration and has more than 30 years in the resources industry. During the last 20 years, Mr Major has held executive and senior management roles within junior and mid-tier resources companies within Australia and internationally. Mr Major’s senior executive and board experience includes project generation, evaluation and acquisition, JV negotiation, financing, permitting and approvals, feasibility study management, offtake and government relations. Mr Major has a strong track record in shareholder wealth creation and has been instrumental in developing greenfield exploration projects to the mine development. Mr Major is currently the Executive Technical Director of C29 Metals (ASX:C29) and Non-Executive Director of Albion Resources Limited (ASX:ALB).
 
Colin Locke – Executive Chairman
Colin Locke has 38 years’ experience in mineral processing, business management, and financial services. Mr Locke worked in the mining industry between 1984 and 1993 processing base and precious metals, where he traded resource stocks, equity derivatives and international futures contacts. In 1993, Mr Locke joined an Australian commodity and futures broking firm as an Investment Adviser and became a director in 1994. In 1998, Mr Locke founded Australian Futures & Options Brokers, which later became CK Locke & Partners, a boutique AFSL firm where he was Managing Director from 1999 until 2010. In 2007, Mr Locke held the role of Corporate Adviser during the acquisition process for the Mayoko iron ore project in the Republic of Congo that was subsequently taken over in 2010 for circa AUD$300m. From 2008, Mr Locke focused on natural resources exploration throughout the Indonesian archipelago and founded Western Mining Network Ltd (later European Cobalt (ASX:EUC) and now Aston Minerals (ASX ASO) where he held the role of Executive Chairman from 2010 to 2012. Mr Locke became Executive Chairman of Krakatoa Resources Ltd (ASX KTA) in 2015, a position he currently holds. In 2021, he became chairman of Albion Resources Ltd (ASX ALB) and Director of Rubix Resources LTD (ASX RB6).

What is your rationale for taking part 121 Mining Investment?

Krakatoa Resources seeks on market support and interest in future capital raisings required for fast tracking the company’s transformation from discoveries into production.

What recent news would you like to highlight to investors attending?

March 2022: Ionic clay hosted REES discovered at Rand project NSW, Australia
April 2022: Major Ionic Clay Hosted REE Discovery at Mt Clere in Western Australia
April 2022: Maiden reconnaissance drilling for heavy mineral sands Mt Clere in Western Australia
April 2022: Ground moving loop survey for Ni-Cu-Co-PGEs at Mt Clere in Western Australia
May 2022: Resource drilling underway at the Dalgaranga critical and tech metal project

What are your key goals in 3 months, 6 months, 12 months?

3 Months:

JORC resource delineation drilling for ionic clay hosted REES at Mt Clere.
Discovery focused drilling results for HMS and Monazite at Mt Clere
Ground moving loop interpretations for NI-Cu-Co-PGEs sulphides at mt Clere
JORC resource drilling for Rubidium, Lithium, Sin, Tantalum and Niobium at Dalgaranga.
 

6 Months:

Metallurgical testing of ionic clay hosted REE and Critical metal resources.
Maiden JORC resource delineation of heavy mineral sands (HMS) and monazite at Mt Clere.
Discovery focused drilling for NI-Cu-Co-PGEs sulphides at Mt Clere
JORC resource drilling results for Rubidium, Lithium, Sin, Tantalum and Niobium at Dalgaranga.

 

12 Months:

Scoping studies and PEAs for REE, HMS and Critical metal projects at Mt Clere
Maiden JORC resource for NI-Cu-Co-PGEs sulphides at Mt Clere, if reconnaissance drilling is successful at Mt Clere
Scoping study and PEA for the critical and tech metal project at Dalgaranga

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Labour and skills shortages. Looking to develop in house team.

What do you think makes your company such a compelling investment?

  • Strong BOD & CEO with histories of exploration success
  • High likelihood of more discoveries within the next 6-12 months
  • 90% of funding deployed to exploration
  • Low market cap’ in comparison to peers
  • Lean capital structure to project quality ratio
  • Projects in Tier one jurisdictions in Australia

What are the top 3 key investor takeaways?

More significant discoveries likely
Investors leveraged to discovery
Abundant price catalyst news flows