Genesis has made a “perfect bolt-on” acquisition worth $250 million, with the Focus Minerals owned Laverton gold project now under its scope.
The transaction will consolidate the both Focus and Genesis’ assets in the Western Australian district of Laverton.
Situated approximately 30km from Genesis’ 3 Mtpa Laverton mill, the acquisition of the gold project is expected to unlock significant synergies, including the optimum pairing of deposits and regional processing infrastructure.
The Laverton gold project comprises a global mineral resource of 73Mt @ 1.7g/t for 3,900koz contained across a series of open pit deposits and one underground deposit.
In addition to the large mineral resource, the Laverton project includes 455 km2 of prospective gold tenure which offers substantial exploration upside both in-mine and regionally.
“It delivers a substantial 4Moz resource with immense exploration upside right next to our Laverton mill,” Genesis managing director Raleigh Finlayson said.
“It offers supplementary open pit and underground ore to our Laverton mill and in the process gives us flexibility regarding the most efficient pairing of deposits and processing infrastructure between Laverton and Leonora.”
The project’s sale is also expected to benefit Focus Minerals by delivering “immediate shareholder value”.
Completion of the share purchase agreement is expected to occur early next month.
“We are extremely pleased with the outcome achieved in the sale of Laverton and believe the consideration payable represents compelling value to our shareholders,” Focus’ executive chairman Wanghong Yang said.
“Proceeds from the sale of Laverton will strengthen the financial position of the company as it continues with development at the Bonnie Vale Underground Mine and open pit mining operations at the Coolgardie Gold Project.”
