Kairos Minerals (ASX:KAI) signed a mineral rights agreement with Pilbara Minerals (ASX:PLS), resulting from the company's sale of non-core assets to Pilbara Minerals in 2024, according to a Friday filing with the Australian bourse.

The agreement provides the company with all mineral rights, except lithium and tantalum, to three Pilbara Minerals exploration licenses and one application in the Mt York/Pilgangoora area in Western Australia, the filing said.

The company will pay Pilbara Minerals a royalty of 2% of gross revenue on any minerals recovered and sold from the licenses, per the filing.

Kairos Minerals shares fell nearly 5% in midday trade Friday, while Pilbara Minerals shares rose nearly 4%.