Kairos Minerals Ltd (ASX: KAI) has announced the receipt of the second and final $10 million payment from PLS Group Ltd (PLS), as per the Tenement Sales Agreement (TSA) dated 30 July 2024. Kairos Minerals owns 100% of the flagship 1.4 Moz Mt York Gold Project that was partially mined by Lynas Gold NL between 1994 and 1998. This payment relates to the sale of six prospecting licenses and the underlying mining lease application M45/1307, associated with Kairos’ Mt York Gold Project in Western Australia, bringing the total consideration received to $20 million. The initial $10 million payment was received on 5 September 2024, upon completion of the transaction.
The final payment was triggered by the granting of PLS’ mining lease application M45/1307 on 22 January 2026. In conjunction with this, Kairos and PLS have executed a royalty deed pertaining to M45/1307, granting Kairos a 2% Gross Revenue royalty from the sale of any product (lithium, tantalum, and all other minerals, including gold) from the grant date of M45/1307. This royalty is a perpetual entitlement.
With a bolstered cash balance of $35 million, Kairos is well-positioned to advance resource growth and feasibility studies at its recently granted Mt York Mining Lease. Chairman Simon Lill stated that the funds will allow the company to de-risk the Mt York project through pre-feasibility work based on an updated resource estimate. The company also plans to utilise a sizable exploration budget over the expanded Mt York area, encompassing 367km2 of PLS tenements and 168km2 of the Pincunah tenements and application.
Looking ahead, Kairos plans to review and release results from the Main Hill Extension drilling program, compile geological and assay data for an updated Mineral Resource Estimate, and complete a mineral resource estimation over the entire 4,200m-long Mt York Gold Project. The company will also engage with PLS regarding a mining lease application covering Main Hill Extension, continue exploration over the PLS and Pincunah licenses, and appoint key study personnel to progress the Pre-feasibility Study work for the Mt York Gold Project.