Kaoko Metals raises $20M for copper drilling

• Kaoko Metals raised $20 million through a heavily supported institutional share placement to speed up exploration in Namibia.
• New shares were priced at $2.20 each.
• The fresh capital will fund extra diamond drilling rigs and expand geophysics testing across the primary target zones.

Kaoko Metals (ASX:KAO) secured $20 million in new equity funding to accelerate exploration activities at its core Chalkos Copper-Silver Project.

The capital raise priced shares at $2.20 apiece, representing a 12% discount to the last close of $2.50 on Sept. 3 and a 20.2% premium to the 15-trading-day volume-weighted average price of $1.83.

"These funds allow us to move decisively to bring a second diamond rig to Chalkos and expand drilling at the priority Otniel and Donkey Hill prospects," said Kaoko Metals Managing Director Gerard O'Donovan.

The deal boosts total available cash reserves to over $24 million before transaction costs.

Following the announcement, the Kaoko Metals share price was down at $2.40.

The business is focused on exploring sedimentary copper-silver deposits across the Western Kaoko Belt in Namibia.