PERTH (miningweekly.com) – Diversified explorer Kairos Minerals on Wednesday announced a A$7-million share placement to sophisticated and professional investors to fund exploration at its Pilbara gold project, in Western Australia.
Some 127.2-million new shares will be issued at a price of 5.5c each, along with one free attaching option for each share, exercisable at 10c and expiring at the end of 2020.
Global asset manager Sprott Capital Partners has subscribed for A$5-million of the placement.
“This is a watershed moment for the company which confirms our position at the forefront of the new Pilbara gold rush. We are delighted to welcome Eric Sprott as a cornerstone shareholder and participant in this pivotal capital raising, which puts Kairos in an exceptionally strong position to pursue aggressive exploration programmes across our key projects,” said Kairos executive chairperson Terry Topping.
“Together with the expected proceeds from option conversions, the completion of this placement will increase our cash position to over A$10-million.”
The proceeds of the placement will be used in ongoing exploration work at the Pilbara gold project, including targeting extensions of the existing Joint Ore Reserves Committee-compliant mineral resource of 259 000 oz at the Mt York gold/lithium project.
“Kairos is in the fortunate position of having both an extensive and high-quality ground position which is highly prospective for conglomerate-hosted gold and an established 258 000 oz resource base at a project in Mt York, with an extensive mining history,” said Topping.
“Our strong position in the Pilbara, plus our highly prospective Roe Hills project adjacent to Breaker Resource’s emerging discovery, gives us the ability to capitalise on some exceptional growth opportunities in the Australian gold sector.”