Kairos Minerals has leapt into the working week, locking away a $4.2m capital raise that was corner-stoned by billionaire gold bull and Fund Manager, Eric Sprott who will maintain his 10% holding in Kairos post the raise.
The company will use the money to fund a major ramp up of its exploration campaign across its suite of gold projects in the Pilbara. Kairos is hoping to emulate the stunning success of neighbour, De Grey Mining and join the prestigious ‘million-ounce club’ in the coming months with the money.
Kairos Executive Chairman, Terry Topping, said: “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 20km north of our Kangan Project.”
“Kairos has long recognised the Pilbara’s exceptional gold prospectivity, and over the past four years has accumulated one of the region’s largest strategic land-holdings for gold exploration.”
Kairos has accumulated a strategic position in the Pilbara with a land holding covering over 1,300 square kilometres. The company’s focus has been the targeting of key geological targets including intrusive and conglomerate-related gold. Its tenure in the Pilbara is now spread over five key project areas including the Kangan project which is adjacent to De Grey’s 2.2 million-ounce Hemi discovery that sent that company’s market cap skyrocketing to over half a billion dollars.
Kairos’ capital raising is the result of two transactions with a share placement to sophisticated investors raising $2.5 million with the balance of $1.7 million coming courtesy of a one-for-eight rights issue to existing shareholders.
The new funds will help Kairos boost its already sizeable resource inventory in the Pilbara, which tips the scales at over 873,000 ounces of gold as Kairos hurtles headlong towards the ‘magic-million ounce’ mark. The company has ear-marked the funds for specific programs including greenfields targets that have the potential to host ‘Hemi intrusive-style’ gold mineralisation and established targets, including the extensive gold anomaly at Fuego, within the Croydon Project area.
Mr Topping, said: “The funds raised through the combined placement and rights issue will enable us to progress a focused, multi-pronged exploration program 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 10km long Fuego gold-in-soil anomaly.”
Kairos is expected to build momentum in the coming weeks as fieldwork kicks off in earnest by early June, with drilling in July expected to fire up the company’s news flow into the new financial year.
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By Matt Birney
