Sprott to maintain stake in Kairos as part of raising

29th May 2020
Resources Rising Stars

Canadian billionaire investor Eric Sprott will maintain his 10 per cent stake in Kairos Minerals as part of a $4.2 million raising by the Pilbara gold play (reports The West Australian).

The raising will comprise a $2.5m placement at a discounted 1.1¢ along with a one-for-eight non-renounceable rights issue to raise a further $1.7m.

The cash will be used for exploration and drilling programs across Kairos’ Pilbara gold project, where Kairos is targeting intrusive-hosted gold discoveries similar to De Grey Mining’s nearby Hemi discovery.

The project already hosts a gold endowment of 873,000oz across three deposits.

The deposits lie adjacent to Pilbara Minerals and Altura Mining’s Pilgangoora projects south of Port Hedland.

Shareholder approval will be required for renowned gold bull Mr Sprott to subscribe for 18 million new shares to maintain his holding at 10 per cent.

Kairos executive chairman Terry Topping said strong support for the placement, which had introduced a number of new investors to the company’s register, reflected growing recognition of the Pilbara as one of Australia’s most exciting emerging gold provinces.

Kairos shares were up 0.1¢ to 1.8¢ at 10.45am.

Shares in the explorer soared in late 2017 when it found course nuggets on the surface at its Croydon project, linking it to the Pilbara conglomerate gold rush.

Subscribe to the RRS Weekly Wrap

© 2020 Resources Rising Stars All Rights Reserved