Genesis Bolsters Gold Resources with Laverton Project Acquisition for A$250M

Strategic Acquisition Bolsters Genesis’ Growth Ambitions

Genesis Minerals Limited (ASX: GMD) has entered into a binding agreement to acquire the Laverton Gold Project from Focus Minerals Limited (ASX: FML) for an upfront cash consideration of A$250 million. This acquisition adds a substantial ~4 million ounce gold resource at an average grade of 1.7 grams per tonne, located approximately 30 kilometres from Genesis’ existing Laverton mill.

The Laverton Gold Project comprises a global Mineral Resource of 73 million tonnes at 1.7g/t gold for 3.9 million ounces, inclusive of historical estimates, alongside Ore Reserves of 546,000 ounces at 1.3g/t. The project includes a large tenement package with 455 kilometres of prospective gold tenure, offering significant exploration upside both within and beyond the current resource footprint.

Operational Synergies and Financial Flexibility

Genesis plans to leverage the proximity of the Laverton Gold Project to its 3 million tonnes per annum Laverton mill to optimize ore supply from both open pit and underground sources. This integration is expected to unlock operational synergies, including the potential to process ore from the flagship Tower Hill deposit at the Leonora mill, thereby reducing operating costs.

The acquisition will be funded through a combination of existing cash reserves and an upsized corporate revolver finance facility, which has been increased from A$120 million to A$225 million. Post-completion, Genesis anticipates retaining approximately A$350 million in available liquidity, maintaining a strong balance sheet to support ongoing growth initiatives.

Advancing the ASPIRE 400 Strategy with Board Enhancements

This acquisition aligns with Genesis’ “ASPIRE 400” accelerated growth strategy, which aims to increase production and cash flow significantly over the coming years. To support the expanded operational scope, Genesis has appointed Duncan Coutts, a seasoned mining executive and engineer with extensive experience in project development and integration, as an Executive Director. This appointment complements the existing leadership team, allowing the Chief Operating Officer to focus on operational delivery and strategic execution.

Genesis’ immediate priorities include in-fill and extensional drilling to de-risk and rebuild the resource base, optimization studies for oxide and transitional pits, staged mill expansion studies at Laverton, and exploration across the highly prospective tenement package.

Robust Technical Foundation Underpins Valuation

The acquisition is supported by detailed JORC-compliant mineral resource and ore reserve estimates, extensive geological interpretations, and rigorous sampling and drilling programs. The Laverton Gold Project’s mineralization is structurally controlled within the Laverton Greenstone Belt, with gold hosted in a variety of lithologies including andesitic volcanics and banded iron formations.

Mining methods are conventional open pit with hydraulic excavators and dump trucks, supported by geotechnical studies and pit optimizations. Metallurgical test work indicates favorable gold recoveries averaging 91%, with processing planned through the existing Barnicoat mill’s gravity and carbon-in-leach circuits.

Looking Ahead

Completion of the acquisition is expected in early June 2025, after which Genesis will provide further details on integration plans and operational updates. The company’s strong liquidity position and strategic asset base position it well to capitalize on exploration upside and production growth opportunities in the Laverton district.