Genesis Minerals (ASX:GMD) has entered a share purchase agreement with Focus Minerals (ASX:FML) to acquire its Laverton Gold Project for $250 million in upfront cash.
The company will take ownership of the 445km2 landholding, including site infrastructure such as workshops, haul roads and bore fields, with the deal expected to be finalised in early June 2025.
Canaccord Genuity (Australia) and Sternship Advisers acted as corporate advisors and Gilbert + Tobin acted as legal adviser.
Genesis, which has a market capitalisation of $4.9 billion, will fund this acquisition from its existing cash flow, as well as its recently upsized corporate revolver facility that is worth $225 million.
The company says the acquisition aligns with its ‘Aspire 400’ growth strategy, offering synergies between additional deposits and the processing infrastructure at Genesis’ Leonora and Laverton operations.
Managing Director Raleigh Finlayson says the project delivers “substantial” resources with exploration upside near the Laverton mill.
“With more ore available at Laverton, our flagship Tower Hill deposit can potentially be processed at Leonora resulting in significantly lower operating costs,” Finlayson says.
The Laverton Gold Project has a mineral resource estimate of 4 million ounces at 1.7 grams per tonne, with the purchase price equating to approximately $63 per resource ounce, and reserves of 546,000 ounces at 1.3g/t.
Meanwhile, Genesis is welcoming Duncan Coutts as an executive Director, following non-executive Director Mick Wilkes’ retirement. Wilkes will continue with Genesis as Technical Advisor.
Chairman Tony Kiernan says Coutts’ vast experience as a resources executive and mining engineer will further bolster development and operational capability of the company.
“Duncan’s immense experience in project due diligence, project development and integration will be invaluable as part of our commitment to growth and development,” he says.
“Importantly, his appointment will also enable Chief Operating Officer Matt Nixon to remain heavily focused on our core operations and five-year plan.”
Genesis is an Australian miner, focused on the development of gold projects across Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Genesis Minerals
