Genesis Minerals Advances $639 Million Magnetic Resources Acquisition with Lady Julie Expansion

Genesis’ $639 Million Offer Brings Certainty and Premium to Magnetic Shareholders

Genesis Minerals Limited (ASX:GMD) and Magnetic Resources NL (ASX:MAU) have formalised a binding Scheme Implementation Deed for Genesis to acquire 100% of Magnetic’s shares. The offer values Magnetic at an implied A$2.00 per share or roughly A$639 million fully diluted, representing a 25% premium to Magnetic’s last close and about 35% above its 30-day volume weighted average price.

The consideration mix is about 70% cash and 30% Genesis shares, with Magnetic shareholders receiving A$1.40 cash plus 0.0873 Genesis shares per Magnetic share by default. Shareholders can also elect to receive the consideration fully in cash or fully in shares, subject to scale back mechanisms. The Magnetic board unanimously recommends the Scheme, pending an independent expert’s endorsement and absence of a superior proposal.

Lady Julie Gold Project Emerges as Strategic Growth Catalyst

Magnetic’s flagship asset, the Lady Julie Gold Project, boasts a Mineral Resource of approximately 2.2 million ounces grading 1.8 grams per tonne gold. Situated only 20 kilometres from Genesis’ 3Mtpa Laverton mill, Lady Julie offers a clear pathway to feed incremental open pit and underground ore into existing processing infrastructure.

Significantly, Lady Julie’s northern boundary adjoins Genesis’ recently acquired Focus Minerals Laverton Gold Project tenure, paving the way for operational synergies and cost savings by integrating the two into a larger open pit operation. This bolt-on acquisition complements Genesis’ established presence on Laverton’s emerging Chatterbox Trend, enhancing exploration upside along strike and at depth.

Metallurgical Advances and Underground Expansion Boost Project Economics

Recent metallurgical testwork on the Lady Julie North 4 deposit indicates that a simplified processing route; gravity concentration plus cyanide leaching with regrind; improves gold recovery to an average of 92.0%, up from 91.7% with previous flotation-intensive methods. This could reduce capital and operating costs while lowering operational complexity.

Meanwhile, an updated underground production target from a scoping study has expanded the mineable resource to around 13 million tonnes at 2 g/t gold, extending the underground mine life from 8 to 14–19 years. Average annual production rates are projected between 710,000 and 920,000 tonnes (41,000 to 52,000 ounces), with peak five-year production reaching up to 1.25 million tonnes per annum.

The scoping study also reports reduced underground mining costs of A$116–122 per tonne, down from A$149 per tonne in the 2025 feasibility study, and defers some capital expenditure by prioritising open pit operations at project start-up.

Scheme Progresses with Regulatory Filings and Shareholder Support

Magnetic has lodged a draft Scheme Booklet with ASIC and ASX, which includes an independent expert’s report supporting the transaction. The booklet is expected to be distributed to shareholders shortly, with a court hearing scheduled for 28 April 2026 to approve the Scheme process. Completion is anticipated by June 2026, subject to shareholder approval and regulatory clearances.

Major Magnetic shareholders holding nearly 20% of the company’s shares have committed to vote in favour of the Scheme and against competing bids, adding to the deal’s momentum. Genesis plans to fund the cash component from existing cash reserves and an undrawn revolving credit facility, maintaining substantial liquidity post-acquisition.

This acquisition aligns with Genesis’ growth strategy dubbed “ASPIRE 500”, aiming to build a multi-million-ounce resource base and production profile. The combined group would hold pro forma Mineral Resources of 21 million ounces and Ore Reserves of 5.2 million ounces, positioning Genesis as a significant player in the Eastern Goldfields.

Genesis’ recent strong production and cash generation, including record mill throughput and 23,000 ounces produced in January 2026, underpin its capacity to integrate and develop Lady Julie efficiently.

The deal’s success depends on the final shareholder vote and potential regulatory conditions. Investors should note that the underground production target includes a portion of Inferred Mineral Resources, which carry lower geological confidence and inherent uncertainty in achieving forecasted outputs.

For investors tracking this development, the recent draft Scheme Booklet lodged with ASIC marks a critical step towards closing, providing detailed insights into the transaction rationale and expected benefits.