Western Australian explorer Kairos Minerals, known for its gold, lithium and nickel projects, has just secured a $7 million share placement for the exploration of the Pilbara gold project.
Kairos’ current projects include Mt York, Roe Hills, and the Fraser and Dingo nickel projects and its ground position is considered highly prospective for conglomerate gold; its Mt York project represents an established JORC-compliant 258,000 ounce resource base.
The deal comprises of 127.3 million shares plus a one-for-one 10c attaching option, and will primarily focus on expansion drilling at Kairos’s Mt York gold-lithium project. Including existing cash reserves, the deal increases Kairos’s cash resources to over $10 million.
Eric Sprott, billionaire investor from Canadian firm Sprott Capital Partners and chairman of Kirkland Lake Gold, will subscribe for $5 million. Sprott already has sizeable stakes in Novo Resources and De Grey Mining.
The investment will be used to fund follow-up drilling at Roe Hills (120km east of Kalgoorlie), gold exploration of the company’s 1,158 square kilometre Pilbara tenure, and extension of the Mt York project.
Terry Topping, executive chairman of Kairos referred to Sprott in a statement as a “cornerstone shareholder” crucial to the company’s continued aggressive expansion in the region.
“This is a watershed moment for the company, which confirms our position at the forefront of the new Pilbara gold rush,” he said. “Together with the expected proceeds from option conversions, the completion of this placement will increase our cash position to over $10 million.
“Our strong position in the Pilbara, plus our highly prospective Roe Hills project adjacent to Breaker Resources’ emerging discovery, gives us the ability to capitalise on some exceptional growth opportunities in the Australian gold sector.”