Kairos Minerals Ltd (ASX:KAI, OTCQB:KAIFF, FRA:YAJ) earlier this week confirmed it had received the second and final $10 million payment from PLS Group Ltd under a previously announced tenement sale agreement, lifting the company’s cash balance to around $35 million.
The payment completes a $20 million transaction agreed in July 2024 relating to non-core tenements associated with the Mt York Gold Project in Western Australia. Managing Director Dr Peter Turner said the deal was significant as it strengthened the balance sheet without diluting shareholders.
Interview highlights
- Kairos Minerals received the second and final $10 million payment from PLS Group Ltd
- Total consideration from the tenement sale was $20 million with no shareholder dilution
- Cash balance now stands at approximately $35 million
- Transaction involved non-core tenements near the Mt York Gold Project
- Mt York currently hosts a 1.4Moz gold resource
- Around 27,000 metres of drilling completed in the past year
- New mineral resource estimate expected in Q1 2026
- Mining licence granted and native title agreement signed
- Company believes it is undervalued relative to peers
- Additional project consolidation underway via the Pen Schooner acquisition
$10M as resource estimation gets underway
Proactive: Okay. Welcome back to Proactive Investors. I’m your host Kerry Stevenson. Today I’m joined by Dr Peter Turner, Managing Director of Kairos Minerals. The company’s key asset is the Mt York Gold Project in the Pilbara region of Western Australia. Welcome to Proactive, Peter.
Dr Peter Turner: Thanks, Kerry. Happy New Year — although we’re already into February now.
Proactive: This is the first time we’ve caught up in 2026. You’ve just received another $10 million following the deal with PLS Group. Can you run us through that?
Dr Peter Turner: Sure. The extra $10 million that came into our bank account on Friday afternoon was part of a deal we struck with PLS back in July 2024. They paid an initial $10 million at the time, and what we received on Friday was the second and final payment under the $20 million agreement.
Proactive: What did that deal involve?
Dr Peter Turner: It related to the sale of a non-core tenement. It was a good deal for us — $20 million in total — and it also gave us mineral rights over a large and highly prospective area around Mt York. Importantly, we did not dilute shareholders to receive that funding.
Proactive: Kairos has a large number of shares on issue. Some investors might question capital management. What would you say to them?
Dr Peter Turner: We have about 20% institutional ownership, including international and Australian institutions. Consolidation is something we regularly discuss at board level, and those discussions will continue. It wouldn’t surprise me if it’s looked at more seriously in coming months.
Proactive: Talk to us about news flow and shareholder value as we move through 2026.
Dr Peter Turner: About a year and a half ago, the company was trading at around one cent. Today it’s around four cents, which is positive, but we still believe Kairos Minerals is undervalued compared to peers. Mt York currently stands at 1.4 million ounces, and we completed about 27,000 metres of drilling last year.
Proactive: What’s next on the resource front?
Dr Peter Turner: Resource estimation work is underway, and we expect to release a new mineral resource estimate in the first quarter of 2026. I believe the deposit is larger than 1.4 million ounces, and we’ll prove that with the update.
Proactive: What other milestones have been achieved?
Dr Peter Turner: The mining licence has been granted, the native title agreement has been signed, and we’ve announced a transaction to acquire the Pen Schooner project to further consolidate the Mt York area.
Proactive: Final thoughts?
Dr Peter Turner: We’ve delivered on what we said we would do. There’s a lot of news flow coming, and this year should be about seeing the payoff from that work.