Kairos’ Cash Balance Hits $35M After Final $10M Payment from Pilbara Minerals
Kairos Minerals has received the final $10 million payment from Pilbara Minerals under a key tenement sale, lifting its cash reserves to $35 million and setting the stage for expanded exploration and feasibility studies at the Mt York Gold Project.
- Final $10M payment received under Tenement Sale Agreement with Pilbara Minerals
- Royalty deed executed granting Kairos 2% gross revenue royalty on mining lease
- Cash balance now $35M to fund resource growth and pre-feasibility studies
- Exploration to expand over 367km of Pilbara Minerals tenements and 168km of Pincunah licences
- Next steps include drilling results, updated resource estimates, and progressing pre-feasibility study
Final Payment Completes Strategic Tenement Sale
Kairos Minerals Ltd (ASX – KAI) has announced receipt of the second and final $10 million payment from Pilbara Minerals Ltd (PLS), completing the $20 million Tenement Sale Agreement signed in July 2024. This transaction relates to six prospecting licences and the mining lease application M45/1307 over the Mt York Gold Project in Western Australia.
The final payment was triggered by the granting of the mining lease to PLS in January 2026, marking a significant milestone in the deal. This payment boosts Kairos’ cash reserves to a robust $35 million, providing a strong financial foundation for the company’s next phase of development.
Royalty Agreement Adds Long-Term Value
Alongside the payment, Kairos and PLS executed a royalty deed granting Kairos a 2% gross revenue royalty on all minerals produced from the granted mining lease, including lithium, tantalum, and gold. This perpetual royalty offers Kairos ongoing exposure to future production upside without operational risk.
Chairman Simon Lill highlighted the strategic importance of this arrangement, noting that the cash injection and royalty income position Kairos to accelerate resource growth and feasibility studies. The company plans to leverage these funds to de-risk the Mt York project through updated resource estimates and pre-feasibility work.
Expanding Exploration Horizons
With the strengthened balance sheet, Kairos is set to expand its exploration footprint significantly. The company will explore the 367 kilometres of tenements now held by PLS around Mt York, as well as the 168 kilometres of the adjacent Pincunah project licences and applications. This expanded area holds promising potential for new discoveries and resource extensions.
Upcoming activities include reviewing drilling results from the Main Hill Extension, compiling geological data for an updated mineral resource estimate, and engaging with PLS on additional mining lease applications. Kairos also plans to appoint key personnel to advance the pre-feasibility study, aiming to refine project economics and development timelines.
Looking Ahead
The Mt York Gold Project currently hosts an estimated 1.4 million ounces of gold, with previous studies indicating a robust open-cut mining operation. Kairos’ focus on near-surface, high-grade zones and resource expansion could enhance the project’s value proposition further.
As Kairos moves forward, market watchers will be keen to see how the company translates its strong cash position and expanded tenement control into tangible resource growth and project advancement.
Bottom Line?
Kairos’ strengthened cash position and royalty deal set the stage for a pivotal year of resource growth and project development at Mt York.
Questions in the middle?
- How will updated resource estimates impact the Mt York project’s valuation?
- What timelines are expected for the completion of the pre-feasibility study?
- Could further mining lease applications with PLS unlock additional project upside?
