Genesis Minerals is set to boost its gold production and cashflow by acquiring the Laverton gold project in Western Australia from Focus Minerals for $250 million.
Genesis entered a binding share purchase agreement for Laverton, which boasts a global mineral resource of approximately four million ounces (Moz) at 1.7 grams per tonne (g/t) and 546,000 ounces in reserves at 1.3g/t.
The company said there is clear potential for the project to supply open pit and underground ore to Genesis’ Laverton mill approximately 30km away.
“This is the perfect bolt-on acquisition,” Genesis managing director Raleigh Finlayson said. “It delivers a substantial 4Moz resource with immense exploration upside right next to our Laverton mill.”
“It offers supplementary open pit and underground ore to our Laverton mill and in the process gives us flexibility regarding the most efficient pairing of deposits and processing infrastructure between Laverton and Leonora.”
The transaction is expected to be completed by early June. Genesis will fund the acquisition by using its existing cash reserves and an upsized corporate revolver facility, maintaining balance sheet flexibility with approximately $350 million in available liquidity post-transaction.
The company plans to prioritise in-fill and extensional drilling, optimise oxide and transitional pits at Laverton, exploring a highly prospective tenement package covering 455km². Mining leases have already been granted to 99 per cent of the resources and reserves at the project.
Considering the company’s growth, Genesis has appointed experienced mining professional Duncan Coutts as executive director, who has background in leading multiple “bolt-on” acquisitions during his tenure at Ramelius Resources.
“Duncan’s immense experience in project due diligence, project development and integration will be invaluable as part of our commitment to growth and development,” Genesis chairman Tony Kiernan said.
“Importantly, his appointment will also enable chief operating officer Matt Nixon to remain heavily focused on our core operations and five-year plan.”
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