Krakatoa Resources will raise $1.6 million for its King Tamba lithium drilling project through a placement of shares.

The placement comprises 37,209,303 shares at 4.3 Australian cents each, with a portion worth $600,000 representing drilling equity provided by its drilling partner, Topdrill, rather than cash.

The funds will further finance the 6,000m drill program at King Tamba, which is set to start soon.

The shares are expected to be allotted around Dec. 6.