Global will pay A$4 million for new Kairos shares priced at 1.8c each, with Kairos to raise a further $6.5 million via an underwritten entitlement offer at pricing of 1.5c per new share.
A “collaboration agreement” has been signed by the two ASX-listed companies, including Global getting the right of first refusal on any Roe Hill divestment.
Capital markets firm Argonaut – which is involved in the Kairos fundraising and previous Global equity raisings – said the deal for Global was positive from a number of angles including giving exposure to new prospective exploration areas, access to additional water sources for exploration and development activities, as well as improved access to the Trans Australian Railway corridor and other access infrastructure.
Kairos also owns lithium prospective ground in the Pilbara and gold resources south of Port Hedland (and near De Grey’s Mallina/Hemi project), totalling 1.6 million ounces.
The company’s board was changed about 12 months ago the arrival of the well-known Klaus Eckhof as chairman and Dr Peter Turner as managing director.
Another well known resource sector operator, Mark Calderwood, joined the Kairos board later that same month, with the trio being involved over the years in a number of gold plays in Africa.
Prior to going into a trading halt shares in Kairos last traded at 1.7c, capitalising the company at $33 million.
Global’s shares were trading at $1.48 this week, capitalising it at nearly $400 million.
