Genesis Resources Limited has completed its acquisition of full ownership of the Silgen joint venture controlling the Plavica project in North Macedonia, while preparing for follow-up drilling in its Australian tenements amid ongoing environmental studies.
- Genesis acquires remaining 38% stake in Silgen JV, gaining 100% ownership of Plavica project
- Environmental studies and baseline monitoring continue at Plavica for mining approval
- Follow-up drilling planned for Alice Springs and Arltunga tenements in Northern Territory during 2025
- Several Australian tenements renewed, securing exploration rights
- Company managing cash flow with loan facilities amid ongoing exploration expenditure
Full Control of Plavica Project Achieved
Genesis Resources Limited has taken a significant step in consolidating its position in the Republic of North Macedonia by acquiring the remaining 38% interest in the Silgen joint venture company from its local partner, RIK Sileks Ad Kratovo. This transaction, completed in the December quarter, grants Genesis 100% ownership of the Plavica high sulphidation epithermal gold-copper-silver project, a key asset within the Carpathian Volcanic Arc, a prolific mineralised region in Eastern Europe.
The acquisition was structured with Genesis granting a 4% mineral royalty to Sileks on all future products extracted from the Plavica concessions, effectively terminating the joint venture agreement and removing any security interests held by Sileks. This move simplifies project governance and potentially accelerates decision-making as Genesis advances towards mining approval.
Environmental Progress and Approvals
Environmental studies remain a critical focus at Plavica, with ongoing baseline monitoring and tree planting activities conducted in collaboration with local academic and government forestry bodies. These efforts are the final requirements for the mining application approval process, which has already passed rigorous assessments by the Ministry of Economy's Audit and Revision Committee.
Securing environmental approvals is a pivotal milestone that could unlock the project's development phase, positioning Genesis to capitalise on the region's rich mineral endowment.
Australian Exploration Momentum Builds
Back on home soil, Genesis is preparing for follow-up drilling campaigns at its Alice Springs and Arltunga tenements in the Northern Territory. The 2023 drilling results at Alice Springs, including 5 meters at 1.02% copper and 0.26 grams per tonne gold, and at Arltunga, with 6 meters at 3.03 grams per tonne gold from 30 meters depth, have provided encouraging targets for further exploration. Drilling is planned for late March or early June 2025, contingent on seasonal conditions.
Additionally, the company has successfully renewed several Australian tenements, including the Pioneer gold project in Queensland and the McArthur River manganese project in the Northern Territory, ensuring continued exploration rights over these prospective areas.
Financial Position and Funding Strategy
Genesis reported ongoing exploration and evaluation expenditures during the quarter, with net cash outflows from operating activities amounting to AUD 420,000. To support its activities, the company has secured unsecured loan facilities totalling AUD 1.33 million from related parties, bearing interest at 10% per annum and repayable upon completion of a capital raising of at least USD 2 million.
With cash and available financing combined at AUD 785,000, Genesis estimates funding for approximately 1.86 quarters at current expenditure levels. The board remains confident in its ability to raise further capital as needed, leveraging its track record and supportive shareholder base.
Outlook
Genesis Resources is positioning itself for a transformative year ahead. The consolidation of the Plavica project ownership removes a key structural hurdle, while advancing environmental approvals and planned drilling programs in Australia could deliver critical exploration success. However, the company’s near-term funding horizon underscores the importance of timely capital raising to sustain momentum.
Bottom Line?
Genesis’ full control of Plavica and upcoming drilling campaigns set the stage for pivotal developments in 2025.
Questions in the middle?
- When will the final mining approval for Plavica be granted following environmental study completion?
- What are the expected timelines and targets for the upcoming drilling programs at Alice Springs and Arltunga?
- How will Genesis manage funding risks given the limited cash runway and reliance on capital raising?