PERTH (miningweekly.com) – Junior explorer Kairos Minerals will raise A$4.2-million to fund drilling and exploration programmes at its Pilbara gold project, in Western Australia.
The company on Monday said that it had received firm commitments to raise an initial A$2.5-million through a share placement priced at 1.1c a share, with 227-million shares up for offer.
Participants in the placement will receive one free attaching option for every two shares issued, at an option price of 2.5c each and expiring in December 2021.
The share placement will be conducted under Kairos’ existing placement capacity, and will not require shareholder approval.
The company’s largest shareholder, Eric Sprott, will subscribe for up to 18-million shares under the terms of the placement.
Furthermore, Kairos will also undertake a one-for-eight non-renounceable rights issue, also priced at 1.1c each, to raise a further A$1.7-million.
“We are very pleased by the strong support for the share placement, which has introduced a number of new investors to our register. This strong outcome reflects the market’s growing recognition of the Pilbara as one of Australia’s most exciting emerging gold provinces, highlighted by De Grey Mining’s rapidly-emerging high-grade discovery at Hemi, which is located just 20 km north of our Kangan project,” said Kairos executive chairperson Terry Topping.
“The funds raised through the combined placement and rights issue will enable us to progress a focused, multi-pronged exploration programme across our land holding, focused on the discovery of new greenfields intrusive-hosted gold discoveries similar to Hemi.
“Key initial targets will include the Kangan and Skywell prospects, both of which show strong prospectivity for intrusive related gold, as well as the exciting 10-km-long Fuego gold-in-soil anomaly.”