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Genesis Minerals has entered into a $639 million agreement to acquire Magnetic Resources. This deal adds a significant two-million-ounce high-grade mineral resource to Genesis’s gold inventory near Laverton, located in the northern Goldfields of Australia.
Details of the Acquisition
The acquisition is structured through a combination of cash and scrip. Genesis will pay $1.40 in cash for each Magnetic share, along with 0.0873 new Genesis shares. This brings the total value of each Magnetic share to approximately $2.
Key Features of the Deal
- Transaction Value: $639 million
- Gold Resource Added: 2 million ounces high-grade
- Location: Laverton, northern Goldfields
- Cash Component: $1.40 per Magnetic share
- Scrip Component: 0.0873 new Genesis shares
Impact on Genesis Minerals
Following the announcement, Genesis shares increased by 4.5%, reaching $7.18 in early trading. This acquisition will enhance their inventory with the Lady Julie gold project, which holds an estimated 2.2 million ounces of gold grading 1.8 grams per tonne.
Benefits for Shareholders
Raleigh Finlayson, Chair of Genesis, highlighted the significant value this transaction brings to shareholders. It creates synergies by combining essential assets and optimizing operational efficiency.
- Enhanced Mine Life: Adds substantial resources to the Laverton inventory
- Increased Production Outlook: Supports both open-pit and underground ore supply to the existing mill
- Cost Savings: Potential reductions through a unified open pit development
With this strategic acquisition, Genesis Minerals aims to strengthen its position in the gold sector while delivering value to its shareholders through optimized resource management and elevated production capacity.
