$5m Kairos Minerals investment for Canadian billionaire investor Eric Sprott
27th October 2017
Resources Rising Stars
Canadian billionaire investor Eric Sprott has lifted his exposure to the Pilbara conglomerate gold story with a $5 million investment in Kairos Minerals, reports The West Australian.
Mr Sprott’s Sprott Capital Management will make the investment in the aspiring Pilbara gold player as part of a broader $7 million placement announced by Kairos this morning priced at a discounted 5.5¢-a-share.
Sprott already holds a 9.1 per cent stake in Canada’s Novo Resources, which is heavily invested in the Pilbara region with a 12,000sqkm footprint of its own as well as a joint venture with Artemis Resources over its Purdy’s Reward project south of Karratha.
The Eric Sprott-chaired Kirkland Lake Gold recently boosted its stake in Novo to 18.2 per cent courtesy of a $56 million investment and also flagged a $5 million investment in De Grey Mining, which holds tenements adjacent to Purdy’s Reward.
Kairos executive chairman Terry Topping described the Sprott investment as a watershed moment for the company, which confirmed its 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 programs across our key projects,” he said.
“Together with the expected proceeds from option conversions, the completion of this placement will increase our cash position to more than $10 million.”
Kairos already holds a 258,000oz JORC-compliant resource at the Mt York Lithium-Gold Project 90km south-east of Port Hedland.
Its combined Pilbara landholding covers 1158sqkm of tenure, which it says is highly prospective for conglomerate-hosted gold discoveries.
Its other key project is the Roe Hills gold project 120km east-southeast of Kalgoorlie.
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