Genesis Minerals has entered into a binding share purchase agreement to acquire the Laverton Gold Project from Focus Minerals. Valued at A$250 million ($162 million), this acquisition will significantly strengthen Genesis Minerals’ position in Western Australia’s Laverton District. By integrating its existing assets with those of Focus Minerals, the company aims to optimize the combination of deposits and processing infrastructure.
Laverton Gold Project: A Valuable Addition to Genesis Minerals
Located approximately 30 kilometers from Genesis Minerals’ operational Laverton mill, the Laverton Gold Project offers a promising addition to the company’s portfolio. The project boasts a global Mineral Resource of 73 million tonnes at 1.7 grams per tonne, totaling around 3,900 kilokoz in open pit and underground deposits. This impressive resource is complemented by 455 km² of prospective gold tenure. It provides significant opportunities for exploration, both locally and regionally.
Beyond its mineral resources, Genesis Minerals will gain access to vital site infrastructure. This includes workshops, haul roads, and bore fields. Historically, the Laverton Gold Project has produced about 3.6 million ounces of gold. It is a highly valuable asset for the company.
Strategic Synergies and Financial Flexibility
The A$250 million acquisition will be settled in cash, with completion expected in early June 2025. The deal will also involve third-party royalties ranging from 1% to 5%. Genesis Minerals plans to finance the acquisition through its existing cash reserves. Additionally, it will use an expanded corporate revolver facility, which has increased from A$120 million ($78 million) to A$225 million ($146 million).
Post-acquisition, Genesis Minerals expects to maintain financial flexibility, with an estimated A$350 million ($227.7 million) in available funding. This aligns with the company’s “ASPIRE 400” growth strategy. The aim is to create synergies between deposits and processing facilities at its Laverton and Leonora sites.
Enhancing Operational Efficiency and Growth
Genesis Minerals’ managing director, Raleigh Finlayson, emphasized the strategic importance of this acquisition. He described it as a “perfect bolt-on acquisition,” noting its substantial 4Moz Resource. There is also significant exploration upside near the Laverton mill. The addition of this resource will provide supplementary open pit and underground ore. As a result, the company can optimize the pairing of deposits and processing infrastructure between its Laverton and Leonora sites.
With more ore available at Laverton, Genesis Minerals anticipates potential cost reductions at its flagship Tower Hill deposit, which may be processed at Leonora. Both mills will now be able to operate with “long ore,” enabling the company to explore staged plant expansions to further boost efficiency.
Future Priorities and Expansion Plans
Following the acquisition, Genesis Minerals’ immediate priorities will include in-fill and extensional drilling. This will help secure and expand resources. The company will also focus on optimizing the Laverton mine plan by conducting studies on multiple pits feeding into the operation.
Moreover, Genesis Minerals plans to secure necessary approvals for the newly acquired resources. It will conduct staged mill expansion studies at Laverton and Leonora. The company will also continue extensive exploration across the tenement package.
This acquisition not only strengthens Genesis Minerals’ operational capabilities but also aligns with its long-term growth strategy. The Laverton Gold Project presents immense potential for expanding resources, reducing operating costs, and ensuring continued success in Western Australia’s competitive gold mining industry.
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