Blumont proposes to acquire Genesis Resources

26 January 2014 (Last Updated January 26th, 2014 18:30)

Blumont Group will make an off-market takeover bid to acquire Australian mineral exploration and development firm Genesis Resources.

Blumont Group will make an off-market takeover bid to acquire Australian mineral exploration and development firm Genesis Resources.

The company will acquire at an implied bid price of A$0.169 per Genesis share.

Under the bid, Blumont will issue and allot 5.3 new fully-paid ordinary shares of Blumont for every two Genesis Shares.

Genesis's core asset is the right to a majority stake in the highly prospective gold-silver-copper project, situated in Plavica, Macedonia.

Plavica is situated within the Carpathian Volcanic Arc, an epithermal province running through Eastern Europe, which is highly prospective for gold, copper and silver mineralisation.

"Plavica is a valuable and strategic project with great prospects for development."

Genesis has completed about 47,000m of cumulative linear drilling on the Plavica project.

In 2012, the company revealed a maiden resource for Plavica, estimating the project to contain inferred resources of 1.86 million ounces of gold at an average grade of 1.0g per tonne of gold.

The project is also estimated to contain 28.2 million ounces of silver at an average grade of 25g per tonne of silver and 33,900t of copper at an average grade of 0.43%.

Genesis has a portfolio of gold, iron, manganese, uranium and base metal exploration licences covering over 1,136km² in the Proterozoic and Phanerozoic metallogenic provinces of Northern and Central Australia.

Genesis executive chairman Eddie Pang said: "We are targeting to complete the final feasibility study before 28 February 2014, and once that is done, we will have the right to acquire a 62% interest in this project."

The acquisition is part of Blumont's strategy to focus on mineral and energy resources assets across geographies.

The company has acquired stakes, or is in the process of taking interests, in several projects involved in thermal and coking coal, copper, lead, zinc, silver and uranium.

Blumont chairman-designate Alex Molyneux said the company's commitment to become Asia's major diversified natural resources firm remains intact.

"Plavica is a valuable and strategic project with great prospects for development," Molyneux said.

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