LAVERTON: Genesis Minerals Limited (ASX: GMD) has entered into a binding agreement to acquire the Laverton Gold Project from Focus Minerals Limited (ASX: FML) for $250 million in cash, the company announced Monday.
The deal, set to close in early June, will bolster Genesis’ resource base with an estimated 4 million ounces of gold near its existing Laverton processing facility.
Key Highlights of the Acquisition:
– Resource Expansion: The Laverton Gold Project holds a global mineral resource of approximately 4 million ounces at 1.7 grams per ton (g/t), with reserves of 546,000 ounces at 1.3 g/t.
– Synergies: The project is located 30 kilometers from Genesis’ operational 3-million-ton-per-annum Laverton mill, enabling cost-efficient ore processing and potential plant expansions.
– Funding: The acquisition will be financed through existing cash reserves and an upsized $225 million corporate revolver facility, leaving Genesis with about $350 million in liquidity post-transaction.
– Growth Strategy: The move aligns with Genesis’ “ASPIRE 400” plan, which aims to increase annual production to 400,000 ounces through strategic acquisitions and operational optimizations.
Genesis has appointed mining veteran Duncan Coutts as executive director to oversee integration and project development. Coutts, formerly of Ramelius Resources, brings expertise in due diligence and mine expansions. Meanwhile, Mick Wilkes will transition from the board to a technical advisory role.
Immediate priorities for the Laverton assets include infill drilling, mine plan optimizations, and exploration across its 455-square-kilometer tenement package. The company also plans studies to expand milling capacity at Laverton and its Leonora operations.
Genesis, with a market capitalization of $4.9 billion, reported $372 million in cash as of April 30. Major shareholders include AustralianSuper (17.5%) and State Street Corporation (6.9%). The Laverton acquisition is priced at about $63 per resource ounce, which Genesis calls “highly strategic” given the asset’s proximity to its infrastructure.
“This is the perfect bolt-on acquisition,” said Genesis Managing Director Raleigh Finlayson. “It delivers a substantial resource with exploration upside right next to our mill, offering flexibility in how we pair deposits with processing infrastructure.”
The project’s resources and reserves are primarily on granted mining leases, with 99% of approvals secured. Third-party royalties on the tenements range from 1% to 5%.
Canaccord Genuity and Sternship Advisers acted as corporate advisors, while Gilbert + Tobin provided legal counsel. Further details will be shared in an investor presentation post-completion.