Genesis Minerals, an Australian company specializing in gold exploration and mine development, is poised to acquire Kin Mining’s coveted Bruno-Lewis and Raeside gold projects located in Western Australia through a substantial $53.5 million agreement.
Upon finalization of the deal, Kin Mining is anticipated to possess $17 million in cash along with $69 million in Genesis shares. This acquisition comes on the heels of Genesis’ recent off-market takeover of gold explorer Dacian, resulting in Dacian’s delisting from the ASX as of November 20.
In addition to the sale of certain buildings and miscellaneous licenses, encompassing tenements that hold Joint Ore Reserve Committee (JORC) compliant mineral resources totalling 610,000 ounces (oz), Kin will also divest some associated assets.
The calculated transaction value amounts to roughly $88 per resource oz. Post-acquisition, Genesis and its subsidiaries will gain access to specific retained tenure from Kin to facilitate their operations. Meanwhile, Kin will persist in exploring its Cardinia gold project.
Expressing optimism about the acquisition, Genesis managing director Raleigh Finlayson highlighted the strategic value of the Kin assets for the company. “Bruno-Lewis, boasting over 12 metric tonnes of open pit resources, holds promising potential to supplement the future sustainable relaunch of our presently inactive Laverton mill,” Finlayson noted. “Raeside offers additional high-grade open pit ore for our Leonora mill, conveniently situated just 10km away. We are eager to announce maiden reserves for these new deposits, enhancing their worth in our five-year projection set to be revealed next year.”
The addition of Bruno-Lewis and Raeside projects is expected to increase Genesis’ mineral resources by approximately 4%, elevating its current standing to 15 million ounces.
Kin’s executive chair, Rowan Johnston, expressed satisfaction with the deal, stating, “This is a significant agreement for Kin, setting a new benchmark. The influx of cash will enable us to explore deeper targets, refine our existing resources, and consider other avenues for growth. This positions us uniquely in the junior Western Australia gold sector, allowing us to unlock the potential of our current assets, aggressively pursue discoveries, and engage in future consolidation opportunities.”
