Krakatoa Resources (ASX:KTA) has signed a heads of agreement to...

Krakatoa Resources (ASX:KTA) has signed a heads of agreement to providing it with the option to acquire a 75% controlling interest in two graphite projects in southeast Sulawesi, Indonesia, from Carbon Carbon Pte Ltd.

Both the Bone Bay and Laeya River projects are on the Indonesian Department of Energy and Mineral Resources’ Clean and Clear registry, strategically located and considered prospective for graphite based on visual outcrops and early stage exploration work.

Bone Bay is a 99.48 hectare exploration IUP (Mining Business Licence) located on the coastal road in the strategic mining region and port city of Kolaka.

Laeya River covers 98 hectare exploration IUP situated within the graphite prospective Mekongga geological formation close to the provincial city of Kendari.

Carbon, a Singapore domiciled private company, holds an option to purchase 75% of the total number of issued shares in PT Trans Jawa Sulawesi (PT TJS), which has exploration rights over the two projects.

Carbon also has an off take agreement (“Off-Take”) with PT TJS whereby Carbon has agreed to buy all graphite powder from the Bone Bay and the Laeya River projects.   

Initial exploration is proposed at the Bone Bay Project comprising a 4 to 5 month program of rock channel and bulk sampling, trenching (where required), extension of ground geophysical coverage, and widely spaced drilling including downhole electromagnetic and resistivity surveys.