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Kairos seals strategic deal with Global Lithium
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Funding sets up Kairos to drill its highly promising lithium targets in the shadow of Manna near Kalgoorlie.
Shares in Kairos Minerals (KAI) are back on the boards following the company’s highly successful deal with fellow lithium explorer Global Lithium (GL1).
The strategic arrangement will see Global Lithium emerge with a 10 per cent stake in Kairos in return for investing $4 million in the company via a share placement at 1.8c.
Global Lithium’s appetite for a slice of Kairos was seen as a big vote of confidence in the huge potential of Kairos’ Roe Hills lithium project in WA.
Roe Hills sits 100km from Kalgoorlie and is next to Global Lithium’s Manna project, which hosts a resource of 32.7 million tonnes at 1% Li2O.
Kairos has outlined some very large, promising targets at Roe Hills including the Black Cat and Crystal Place anomalies.
The placement to Global Lithium is accompanied by a fully-underwritten rights issue to raise a further $6.5m at 1.5c a share.
The funds will enable Kairos to drill the Roe Hills targets as well as continuing to advance its Pilbara lithium prospects at the Mt York Project. Mt York is next to Pilbara Minerals’ (PLS) giant Pilgangoora Lithium project.
Kairos Managing Director, Dr Peter Turner said: “Attracting a cornerstone investor like Global Lithium is testament to the quality of the Roe Hills Project where we have delivered highly promising lithium targets close to GL1’s Manna deposit.
“I look forward to working with them over our large tenement holding at Roe Hills, especially as we embark on a major drilling programme at the Black Cat and Crystal Palace lithium prospects within the project.
“Black Cat is a 2,800m long Li-Cs-Be-Rb soil anomaly up to 300m wide where we are planning a significant initial drilling programme.
“Kairos has an outstanding future with a strong balance sheet, a Tier-1 strategic partner and quality assets in the Goldfields and the Pilbara that are highly prospective for lithium”.
Kairos and Global Lithium will form a Technical Committee which will assess and review Roe Hills, consider technical studies and reports and provide the Kairos Board and management with non-binding recommendations.
And Kairos has granted Global Lithium a right of first refusal over potential disposals of its interests in any tenements comprising the Roe Hills Project.
Kairos also owns the 1.6Moz Mt York Gold Project in the Pilbara, which it believes has significant potential for further growth.
The Kairos technical team is confident that it can raise the global resources of the project to 2Moz and beyond partly through drill-testing local targets such as Gilt Dragon, where historical drilling has reported 19m at 1.31 g/t from 1m.
“We will continue to focus on drilling our pipeline of untested soil anomalies in a bid to growing the resource while undertaking economic studies on an open pit operation,” Dr Turner said.
This article was developed in collaboration with Kairos Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
