Kairos Minerals Ltd (ASX:KAI) has received firm commitments to raise $7 million via a private placement to sophisticated and professional investors.
Importantly, the placement will see Eric Sprott through Sprott Capital Partners in Canada subscribe for $5 million of the placement.
The funds will be used to underpin the company’s ongoing gold exploration programs in the Pilbara and Eastern Goldfields of Western Australia.
Kairos’ shares were trading 16% higher intra-day, at $0.065.
The placement represents a major endorsement of Kairos’ West Australian gold projects and introduces a significant institutional presence to the company’s share register for the first time.
Together with existing cash reserves and with the expected proceeds of option conversions, the placement will increase the company’s cash resources to over $10 million.
Kairos will focus on exploration targeting the conglomerate-hosted gold potential of its 1,158 square kilometres of tenure in the Pilbara region, including recently commenced helicopter-assisted programs.
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The company has also recently commenced drilling targeting extensions of the existing JORC resource of 258,000 ounces of gold at the Mt York Gold-Lithium Project.
Furthermore, Kairos will carry out follow-up drilling at the Roe Hills Project, located 120 kilometres east of Kalgoorlie in Western Australia.
The drilling at Roe Hills earlier this year returned numerous significant results immediately south along strike from the Lake Roe/Bombora discovery currently being drilled out by Breaker Resources (ASX:BRB).