Kairos Minerals Ltd (ASX:KAI, OTCQB:KAIFF, FRA:YAJ) has received the second and final $10 million payment from PLS Group Ltd under the parties’ Tenement Sale Agreement, lifting the company’s cash balance to about $35 million.
The payment relates to six prospecting licences and the overlying mining lease application M45/1307 associated with Kairos’ Mt York Gold Project in Western Australia, which were sold to PLS for total consideration of $20 million under the agreement dated 30 July 2024. Kairos received the first $10 million on September 5, 2024, following completion of the transaction.
Royalty deed executed after mining lease grant
The final payment — paid in cash at PLS’ election — was triggered by the grant of PLS’ mining lease M45/1307 on January 22, 2026.
In addition, the companies have executed a royalty deed over the granted lease, with Kairos to receive a 2% gross revenue royalty from any product sold from M45/1307, including lithium, tantalum and other minerals such as gold, on a perpetual basis from the grant date.
Chairman Simon Lill said the strengthened balance sheet would support continued de-risking at Mt York, including pre-feasibility work tied to an updated resource estimate, and expanded exploration across surrounding ground — covering 367 km² of PLS tenements and 168 km² of the Pincunah licences and application.
“This is another great outcome for Kairos and comes on the back of our own mining lease grant over Mt York. To have $35m in the bank sets the company up to continue de-risking Mt York through pre-feasibility work based on an updated resource estimate for the project," Lill said.
“The additional funds also give us a sizeable exploration budget over an enlarged Mt York area, where we will start exploring the 367km2 of PLS tenements, and the 168km2 of the Pincunah tenements and application — all of which tie up the prospective belt around Mt York. ”
What's next
Kairos outlined next steps including:
- Review and release results from Main Hill Extension drilling program
- Compile all geological and assay data in preparation for updated Mineral Resource Estimate
- Complete mineral resource estimation over the entire 4,200m-long Mt York Gold Project
- Engage with PLS regarding a mining lease application covering Main Hill Extension
- Continue exploration over the 367km2 of PLS licences and application and 168km2 of the Pincunah Project licences and application.
- Appoint key study personnel to progress the Pre-feasibility Study (PFS) work
- Review all key studies and timeframes to deliver Mt York Gold Project PFS.