Genesis Minerals has entered a binding share purchase agreement with Focus Minerals for the acquisition of the Laverton Gold Project in Western Australia for A$250m ($162.3m).

This move is poised to bolster Genesis Minerals’ production capabilities and cash flow, while unlocking significant synergies by combining deposits with regional processing infrastructure.

The acquisition also includes 455km2 of gold-prospective land, offering considerable exploration potential both in-mine and regionally.

The transaction, with no conditions precedent, is expected to be completed by early June 2025.

Funding for the acquisition will come from Genesis' existing cash reserves and an upsized corporate revolver facility, which has increased from $120m to $225m.

This leaves Genesis with approximately A$350m in available funding post-completion, ensuring continued balance sheet flexibility.

Genesis views this acquisition as a step towards merging the Laverton assets of both Focus and Genesis, which include the recently reactivated three million tonnes per annum (mtpa) Laverton mill.

Located approximately 30km from the Laverton mill, the Laverton Gold Project boasts a mineral resource of 73 million tonnes (mt) at 1.7g/t, amounting to 3.9 million ounces (moz).

The Laverton Gold Project's assets, including site infrastructure like workshops and haul roads, as well as a historical production of about 3.6moz, will now fall under Genesis' ownership.

Genesis managing director Raleigh Finlayson said: “This is the perfect bolt-on acquisition. It delivers a substantial 4moz resource with immense exploration upside right next to our Laverton mill. 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.

“With more ore available at Laverton, our flagship Tower Hill deposit can potentially be processed at Leonora resulting in significantly lower operating costs. With both the Laverton and Leonora mills now ‘long ore’, studies into staged plant expansions continue apace. These benefits make the transaction entirely consistent with our ‘ASPIRE 400’ accelerated growth strategy”.

Brightstar Resources initiated gold processing at the Laverton Mill in March, with ore sourced from Brightstar’s Second Fortune mine and stockpiles at Lord Byron.

"Genesis to acquire Laverton Gold Project in WA for $162m" was originally created and published by Mining Technology, a GlobalData owned brand.

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