ASX-listed gold explorer Genesis Minerals has signed a binding agreement with Kin Mining to acquire the latter’s Bruno-Lewis and Raeside gold tenements in WA for A$53.5m.
These tenements are part of Kin’s Cardinia gold project. As consideration, Kin will receive A$15m in cash and 21.9 million Genesis shares worth A$38.5m.
The transaction is expected to close by March next year, subject to the fulfilment of certain conditions.
Upon closing, Kin will hold a total of 39.1 million Genesis shares worth A$69m and cash of about A$17m.
Located in the Leonora district of WA, the Bruno Lewis and Raeside projects offer shallow mineralisation and low strip ratios coupled with significant oxide ore quantities, bringing higher milling productivity.
Bruno-Lewis is claimed to have a mineral resource of 12.6 tonnes (t) at 1g per tonne (g/t) for 408,000oz including oxide resources of 3.2t at 1.2g/t for 119,000oz.
A trial pit mined in 2010 by Navigator Resources resulted in around 100,000t of ore processed at an average grade of 2.2g/t for 7,400oz.
The Raeside project has a mineral resource of 3.1t at 2g/t for 202,000oz including oxide resources of 0.6t at 1.9g/t for 34,000oz.
An open pit, mined between 1990 and 1992 by Triton Resources, showed 56,000t of ore processed at an average grade of 3.9g/t for 7,030oz.
Genesis expects the acquisition will increase its mineral resources, which are presently 15 million ounces, by around 4%.
Genesis managing director Raleigh Finlayson said: “With more than 12t of open-pit resources, Bruno-Lewis has the potential to supplement the eventual, sustainable restart of our currently idled Laverton mill.
“Raeside offers supplementary high-grade open-pit ore to our Leonora mill just 10km away. We look forward to reporting maiden reserves for these new, value-add deposits and bolting them into our five-year outlook, to be unveiled in the new year.”
Kin executive-chair Rowan Johnston said: “This is a great deal for Kin and one that resets the bar. The cash will allow us to follow up on some exciting deeper targets, further define our existing resources and evaluate other growth options.
“This puts us in a unique position in the junior WA gold sector with the ability to unlock the value of our existing assets, aggressively target new discoveries and participate in future consolidation.”
