Gold company Genesis Minerals on Monday announced the acquisition of the Laverton project from Focus Minerals for A$250-million in cash, adding a four-million-ounce resource to its portfolio.

The deal includes a global mineral resource of 73-million tonnes at 1.7 g/t for 3.9-million ounces of gold and 546 000 oz of ore reserves at 1.3 g/t. The acquisition, priced at about A$63 per resource ounce, is expected to close in early June.

“This is the perfect bolt-on acquisition,” said Genesis MD Raleigh Finlayson. “It delivers a substantial four-million-ounce resource with immense exploration upside right next to our Laverton mill.”

Located about 30 km from Genesis’ three-million-tonne-a-year Laverton mill, the project offers the company additional openpit and underground ore, improving flexibility in ore and processing pairing between its Laverton and Leonora operations.

“With more ore available at Laverton, our flagship Tower Hill deposit can potentially be processed at Leonora, resulting in significantly lower operating costs,” said Finlayson. “With both the Laverton and Leonora mills now ‘long ore’, studies into staged plant expansions continue apace.”

Genesis will fund the purchase through existing cash and an upsized undrawn corporate revolver facility, lifting total available funding to about A$597-million. Post-acquisition, the company expects to retain A$350-million in liquidity.

The acquisition adds 455 km² of prospective gold tenure to Genesis’ portfolio, including multiple openpit and one underground deposit, as well as workshops, haul roads and a bore field. The Laverton gold project has previously produced about 3.6-million ounces.

Genesis says 99% of the project’s resources and reserves are located on granted mining leases, with immediate plans to focus on in-fill and extensional drilling, pit optimisation studies, and exploration.

“This transaction is entirely consistent with our ‘ASPIRE 400’ accelerated growth strategy,” Finlayson said.

LEADERSHIP CHANGES
To support its growth ambitions, Genesis has appointed former Ramelius Resources executive Duncan Coutts as executive director. He brings experience in due diligence, feasibility, approvals and project integration.

“Duncan’s immense experience in project due diligence, project development and integration will be invaluable,” said chairperson Tony Kiernan. “His appointment will also enable chief operating officer Matt Nixon to remain heavily focused on our core operations and five-year plan.”

Nonexecutive director Mick Wilkes will retire from the board but continue as a technical adviser.