Kaoko Metals (ASX: KAO) has raised A$20 million to accelerate exploration at its Chalkos Copper-Silver Project in north-west Namibia, just days after reporting broad zones of visible copper mineralisation from its first two diamond drill holes.
The placement gives the ASX-listed explorer additional funding to expand drilling at the Otniel and Donkey Hill prospects. Kaoko also plans to bring a second diamond drill rig to the project.
The capital raising comes as the Kaoko Metals share price has recorded a sharp rise since the company listed on the ASX in May.
Kaoko raises A$20m for exploration
Kaoko will issue 9,090,910 new shares at A$2.20 each under the institutional placement.
The company said the issue price represents a 12% discount to its A$2.50 closing price on 3 September. It is also 20.2% above Kaoko’s 15-trading-day volume-weighted average price of A$1.83.
Following the placement, Kaoko expects to have more than A$24 million in cash before offer costs.
The new funds will support additional diamond drilling, geological mapping, geochemical sampling and geophysical work across the Chalkos project area.
Visible copper mineralisation at Otniel
The funding announcement follows the completion of the first two diamond holes at Otniel.
Kaoko reported that hole DDOT002 intersected 60.25 metres of visible copper mineralisation from 36.65 metres down-hole to 96.90 metres. The interval included 32.36 metres of strong visible mineralisation.
Hole DDOT001 intersected 51.83 metres of visible copper mineralisation from 39.27 metres to 91.10 metres. This included 17.2 metres of strong visible mineralisation.
The company identified several copper minerals in the two holes, including malachite, chalcocite, cuprite, native copper, dioptase and chalcopyrite.
There is an important point about these results: they are visual observations, not laboratory assay results.
Kaoko has submitted samples from the holes for laboratory analysis. The company expects the assays in about four to six weeks. Those results will provide the copper grades needed to assess the mineralisation more precisely.
Drilling continues at Chalkos
The exploration programme is continuing at Otniel.
Kaoko said DDOT003 is testing the lateral extent of the mineralisation. DDOT004 and DDOT005 are planned to test western and southern extensions.
The company is also expanding work beyond the current drilling areas. The wider programme includes geological mapping, geochemical sampling and geophysical surveys across the Chalkos licence area.
The Chalkos Copper-Silver Project covers about 800 square kilometres of tenure in Namibia’s emerging Kaoko Copper Belt.
At this stage, Chalkos remains an exploration project. The company has not yet established a mineral resource estimate for the project.
Kaoko Metals share price jumps
The drilling results have attracted strong market attention.
Stockhead reported that Kaoko shares rose 140% during trading on 2 September, reaching A$1.77 before closing at A$1.80.
The stock had listed on the ASX at A$0.20 per share in May after Kaoko raised A$6.5 million through its initial public offering.
By 3 September, the shares had closed at A$2.50. The movement has put Kaoko among the ASX copper stocks attracting attention in 2026.
Copper explorer surge on the ASX
Kaoko’s share-price move comes during renewed interest in copper exploration stocks.
Stockhead reported copper trading above US$14,000 a tonne in early September, while several ASX-listed copper explorers were recording significant share-price gains.
The broader copper explorer surge has made drilling results an important focus for investors tracking the sector.
For Kaoko, the immediate focus is now on the laboratory assays from Otniel. Further drilling is also underway as the company works to determine the extent of the mineralised system.
The A$20 million placement provides funding for that work. Until the assay results are available, the company’s latest Otniel results remain visual observations from an early-stage exploration programme rather than confirmed copper grades or a defined mineral resource.
