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- Genesis Minerals (GMD) is set to purchase the Kookynie Gold Project for $13.5 million
- Kookynie is located southeast of Genesis’ Ulysses Gold Project in Leonora, Western Australia
- With this new project, the Greater Ulysses Project’s total mineral resource will increase to 17 million tonnes at 2.34g/t of gold for 1.28 million ounces
- The new purchase will be the next step for Genesis in its pathway to develop a significant new standalone gold mine
- The company will now commence a feasibility study to work towards developing a standalone operation at Ulysses
- Genesis Minerals is up 10.6 per cent on the market this afternoon and is selling shares for 5.2 cents each
Genesis Minerals (GMD) is set to purchase the Kookynie Gold Project for $13.5 million from A&C Mining Investments and Ms Yijun Zhu.
Kookynie is located southeast of Genesis’ Ulysses Gold Project in Leonora, Western Australia.
The project includes a JORC 2012 indicated and inferred mineral resource of 8.53 million tonnes at 1.5g/t of gold for 414,000 ounces.
With this new project, the Greater Ulysses Project’s total mineral resource will increase to 17 million tonnes at 2.34g/t of gold for 1.28 million ounces. This will contribute to Genesis’ strategy of becoming a mid-tier Australian gold company.
Under the agreement, Genesis will pay $3 million in cash and $10.5 million in share payments, with the full payment due in six months. Additionally, a one per cent net smelter royalty will also be paid, but capped at $5 million.
Genesis Managing Director Michael Fowler said the new purchase will be the next step for the company in its pathway to develop a significant new standalone gold mine.
“This is an acquisition which ticks every box for us from a strategic, corporate, geological and tactical perspective,” he said.
“It provides the springboard for a significant reboot of the Genesis story and
puts us on a firm growth trajectory towards the establishment of a significant new standalone gold mining and processing operation at Ulysses,” he added.
The company will now commence a feasibility study to help develop a standalone operation at Ulysses. The study is expected to be completed by the first quarter of 2021.
To pay for this study and drilling, Genesis is aiming to raise around $19.5 million in a placement and rights issue at 4.2 cents per share.
“This study will incorporate the newly acquired resources and assets and build on the significant work Genesis has already completed on mining the Ulysses Deposit,” Michael added.
Genesis Minerals is up 10.6 per cent on the market this afternoon and is selling shares for 5.2 cents each at 1:54 pm AEST.
