Trek Metals (ASX:TKM) has signed a sale agreement to divest its Pincunah Gold and Base Metals Project in the Pilbara region in Western Australia to Kairos Minerals (ASX:KAI).
Trek will receive $100,000 in cash upon the settlement of the sale, $100,000 in Kairos’ shares based on the 20-day volume weighted average price (VWAP), and $200,000 in Kairos’ performance rights based on the 20-day VWAP.
The performance rights will hold a 5-year term. This condition will vest after Kairos obtains a resource estimate of at least 50,000 ounces at a grade equal to or greater than 1 gram per tonne of gold.
This asset adjoins Kairos’ 1.4 million ounce Mt York Gold Project covering four exploration licences over 116.7km2 and one application for 51.1km2.
Trek Managing Director Derek Marshall describes the Pincunah asset as a “logical addition” to Kairos’ portfolio, due to its proximity to Mt York.
“The agreement has been structured to preserve exposure for Trek shareholders to this upside via shares and performance rights that will vest as key exploration milestones are achieved,” Marshall says.
“For Trek, our focus is squarely on the Christmas Creek Project, where we have recently confirmed the presence of exceptionally high-grade manganese mineralisation over a strike length of approximately 750m at surface, within a much larger gravity-defined system.
“We are focusing our management and resources on advancing this exciting discovery, which has the potential to substantially re-rate the value of the company in the coming months.”
Kairos Managing Director Peter Turner says the Pincunah Project has “good potential” to host nearby satellite gold mineralisation to Mt York at its walk-up drill targets for gold.
“The acquisition of Trek’s Pincunah Project adds to our commanding land position around Mt York and ties up the belt for future exploration and discoveries, complementing the additional 367km2 of Pilgangoora Operations ground around Mt York where Kairos owns the gold rights,” Turner says.
“We completed our largest extensional resource drilling campaign at Mt York in the company’s history in 2025 and we are now preparing to deliver an updated mineral resource estimate for the project later this quarter which will, for the first time, include the 1,500m extension of Mt York’s Main Hill deposit to the north.”
Trek Metals is a minerals explorer focused on unlocking value in underexplored regions.
Write to Maddison Elliott at Mining.com.au
Images: Trek Metals
