Tyranna Resources Ltd (ASX:TYX) is set to be issued 7.2 million shares in Kairos Minerals Ltd (ASX:KAI) as part of the 2016 sale of the Pilbara Gold Project in Western Australia.
Kairos is the 100% owner of the project and has recently more than doubled the JORC resource to 643,000 ounces of gold.
As a result of this resource increase, a milestone that was part of the 2016 sale agreement has been triggered which will see 7.2 million shares issued to Tyranna priced at 4 cents.
Tyranna is the second largest shareholder of Kairos with 31.3 million shares, soon to increase to 38.5 million shares.
Milestones related to lithium and gold
The 2016 sale agreement outlined two potential milestones, the first being 5 million tonnes grading 1.2% lithium oxide or at least 500,000 ounces of gold, which has now been met.
A second, and final share issue will take place if Kairos defines at least 15 million tonnes grading 1.2% lithium oxide or at least 1 million ounces of gold.
READ: Tyranna Resources identifies extensive cobalt, copper anomalies in Nevada
Earlier this month, Tyranna received encouraging cobalt results from the initial stream sediment sampling and follow up soil sampling programs at the Goodsprings project in Nevada, US.
Significantly, a grab sample of dump material from the Whale Mine area returned 7.64% cobalt.
Other samples taken from the Whale Mine area returned up to 22.5% copper, 1.37% lead and >30% zinc, reflecting the polymetallic nature of the mineralisation.