Kairos Minerals Ltd (ASX:KAI, OTCQB:KAIFF) has delivered a pivotal September quarter, finalising a landmark mineral rights deal with lithium major Pilbara Minerals Ltd (ASX:PLS), expanding drilling across its flagship Mt York Gold Project, and completing an oversubscribed A$27 million capital raise to accelerate exploration and feasibility work.
Landmark agreement with PLS
The company secured a Mineral Rights Agreement (MRA) granting Kairos ownership of all mineral rights — except lithium and tantalum — across 367 square kilometres of PLS tenure adjacent to Mt York in the Pilbara.
Kairos and PLS tenements. The Kairos mineral rights, excluding lithium and tantalum, apply to the green licences shown on the figure.
The agreement follows last year’s $20 million tenement sale to PLS and opens an additional 1.5 kilometres of strike length already known to host gold mineralisation.
A Program of Works covering 50 holes for 10,000 metres has been approved, and drilling is under way to expand resources along the Main Hill Extension. Kairos says early results continue to confirm robust gold mineralisation at depth, supporting potential for deeper open-pit and underground development.
Expanding Mt York resource growth
Drilling momentum continued at Mt York during the quarter, with Stage 1 expanded from 20,000 to 30,000 metres after discovery of the so-called Monster zone, a new structural corridor northwest of Main Hill.
Key intercepts included:
- 53 metres @ 1.45 g/t Au from 212 metres (including 10 metres @ 2.95 g/t);
- 144 metres @ 0.90 g/t Au from 8 metres (including 20 metres @ 2.08 g/t); and
- 20 metres @ 1.32 g/t Au from 323 metres (including 6 metres @ 3.04 g/t).
The Monster zone remains open to the west and at depth, with follow-up diamond drilling confirming structural continuity.
Plan view of the western side of Main Trend showing the northwestern part of Main Hill Prospect with drill intercepts and the Main Hill Extension prospect on the PLS licence E45/2241 in the ‘Priority Area’. ‘Monster’ area drill hole 25MYDD031 is shown.
Kairos plans further drilling through the December quarter and expects results to feed into an updated Mineral Resource Estimate.
Managing director Dr Peter Turner said the company had seen “another stellar quarter” highlighted by the Mt York drill results and the oversubscribed capital raising.
“There is an expectation that Mt York will grow into one of Western Australia’s largest undeveloped gold development stories, particularly after acquiring the gold rights to the extension of the deposit from PLS in October,” Turner said.
“The interest we saw in the recent $27 million capital raising that was set at market price (and a premium to the VWAP) was very large indeed and is not only a vote of confidence from well-respected institutions in Kairos, its people and its projects, but also derisks the company for the future as it looks to expedite its development ambitions at Mt York.”
Roe Hills review highlights new gold targets
At the Roe Hills Gold Project east of Kalgoorlie, Kairos completed a detailed review identifying two key prospects — Terra and Caliburn — with broad gold intersections and strong potential for resource growth across the 257-square-kilometre tenement package.
Location map of the Roe Hills project showing regional gold mining centres and Roe Hills gold prospects.
Historic and recent drilling at Terra returned results such as 11 metres at 2.59 g/t Au from 78 metres and 35 metres at 1.0 g/t Au from 116 metres, defining mineralisation over 1.5 kilometres of strike open in all directions.
At Caliburn, intercepts of 22 metres at 1.55 g/t Au and 16 metres at 1.36 g/t Au highlight attractive widths and grades.
Magnetic image of the southern Roe Hills project showing gold-in-drillhole results coloured by Au g/t along with significant historic drillhole results from the Terra and Caliburn prospects.
Kairos is preparing a 3,000-metre reverse circulation program in early 2026 to infill and extend both prospects while completing heritage agreements and Programs of Work approvals in Q4 2025.
Strong funding position
Post-quarter, Kairos completed its A$27 million share placement at A$0.04 per share — a premium to the 10-day volume-weighted average price (VWAP) — with significant oversubscription from new and existing domestic and international institutions, which now make up about 20% of its register.
Funds will support ongoing drilling and feasibility studies at Mt York, resource drilling at Roe Hills, and general working capital.
Kairos closed the September quarter with $5.4 million cash on hand, excluding proceeds from the placement.
Outlook
Over the current quarter, the company expects continued assay results from Mt York’s expanded Stage 1 program, progress on its mining agreement with the Nyamal Traditional Owners, and further advancement toward a resource update.
Meanwhile, field planning at Roe Hills positions Kairos to maintain momentum through 2026 as it seeks to grow both its Pilbara and Goldfields gold inventories.