On 28 November 2016, Altura Mining Limited (AJM) announced it had signed a strategic agreement with Kairos Minerals Ltd. (Farm-In Agreement) at Kairos' Wodgina East Project (Wodgina Project). Under the Farm-In Agreement, AJM was granted an exclusive right to explore for lithium for a five (5) year period on the Wodgina Project tenements, comprising E45/4780 and E45/4715 (Tenements). AJM was required to make an upfront cash payment of $100,000 to Kairos. In addition, AJM could acquire a 75% interest in the Tenements if upon the fifth reporting year of the last of the Tenements to be granted, AJM expended or caused to be expended the sum of $250,000 or in connection with exploration or mining on E45/4780 and E45/4715 before the end of each reporting year. Alternatively, AJM could earn its 75% interest during any time in that 5-year period by paying $1.25 million less the cost of any exploration or mining expenditure undertaken by AJM on the Tenements. AJM has not advised Kairos that it has expended the amount of $250,000 on the Tenements for the
reporting year ending 9 May 2020, or that it has expended the sum in connection with exploration or mining on the Tenements. As a result of AJM failing to inform Kairos of its expenditure in breach of clause 5(c) of the Farm-In Agreement, Kairos has advised AJM by way of a notice of termination that: it considers that it is reasonable to assume that the $250,000 annual expenditure, for the year ending 9 May 2020, has not been met by AJM it therefore considers that there are reasonable grounds to terminate the Farm-In Agreement.
Subsequently, given that Kairos has not received indication that AJM disputed the aforementioned notice of termination, or, made payment in the amount of $1.25 million less any expenditure incurred under clause 6(a) of the Farm-In Agreement, on 19 February 2021, Kairos confirmed that the Farm-In Agreement had been terminated.