Genesis to acquire more WA gold projects

20 December, 2023

In a deal worth $53.5 million, Genesis Minerals is poised to acquire Kin Mining’s Bruno-Lewis and Raeside gold projects located in Western Australia. Following the completion of the transaction, Kin will possess $17 million in cash and $69 million in Genesis shares.

This acquisition comes on the heels of Genesis Minerals’ recent off-market takeover of gold explorer Dacian. Resulting in Dacian being delisted from the ASX as of November 20. As part of the deal, Kin will also divest certain associated buildings and miscellaneous licenses. Collectively, these assets, along with the tenements, encompass Joint Ore Reserve Committee (JORC) compliant mineral resources totalling 610,000 ounces (oz). This translates to a transaction value of around $88 per resource oz.

Genesis and its subsidiaries will gain access to retained tenure from Kin to facilitate their operations. Meanwhile Kin continues exploration activities at its Cardinia gold project. Raleigh Finlayson, Managing Director of Genesis, views the Kin assets as strategic additions. He stated that the Bruno-Lewis project, with over 12 metric tonnes of open pit resources, has the potential to complement the sustainable restart of their presently idled Laverton mill. He also emphasised the supplementary high-grade open pit ore from the Raeside project, located just 10km away from their Leonora mill.

Finlayson anticipates reporting maiden reserves for these newly acquired deposits and incorporating them into their five-year outlook, to be disclosed in the upcoming year. The acquisition of Bruno-Lewis and Raeside is expected to augment Genesis’ mineral resources by approximately 4%. This will reach a total of 15 million ounces.

Kin Mining’s Executive Chair, Rowan Johnston, sees the deal as a favourable outcome for Kin. It will provide them with cash resources to explore deeper targets. It will also help them to further define existing resources, and assess additional growth opportunities. Johnston believes that this positions Kin uniquely in the junior WA gold sector. It will enable them to unlock the value of existing assets, aggressively pursue new discoveries, and participate in future industry consolidation.