Krakatoa Resources (ASX:KTA) has secured firm commitments to raise around AU$3.1 million via a two-tranche placement of 295.2 million new shares at AU$0.0105 per share to institutional and sophisticated investors, according to a Friday filing with the Australian bourse.

The participants will receive one free option for every two shares, exercisable at AU$0.02 and expiring Sept. 29, 2028, subject to shareholder approval, per the filing.

Tranche one will issue 190 million shares to raise around AU$2 million under existing placement capacity, while tranche two will issue 105.2 million shares to raise about AU$1.1 million, subject to shareholder approval, the filing said.

The company's directors intend to participate in tranche two with 5 million new shares and 2.5 million placement options, subject to shareholder approval.

The proceeds will fund ongoing drilling at the Zopkhito antimony-gold project, in-adit drilling targeting high-grade zones, conversion of the foreign resource estimate to Joint Ore Reserves Committee compliance, early-stage economic assessment work, and general corporate and placement costs, the filing added.