Kaoko Scores $20 Million Boost for Chalkos Copper-Silver Drilling

Kaoko Metals (ASX:KAO) has secured $20 million through a placement to accelerate drilling at its Chalkos Copper-Silver Project in Namibia. The funds will be used to mobilize a second diamond rig and expand drilling at the Otniel and Donkey Hill prospects.

The company plans to issue approximately 9.1 million shares at $2.20 each, representing a 12% discount to Kaoko's 3 September closing price of $2.50 and a 20.2% premium to its 15-trading-day volume-weighted average price of $1.83.

Kaoko's Managing Director Gerard O'Donovan said the demand for the placement followed early observations from the first diamond holes drilled at Otniel, which were reported last week. The company will use the funds to undertake geophysical work at its Karibib Gold-Copper-Tungsten Project ahead of a proposed maiden drilling program.