Finlayson the 'best MD in the gold space'

Genesis Minerals shareholders have overwhelmingly approved a fundraising and the appointment of high-calibre directors (reports MiningNews).
25th November 2021

In September, it was announced former Saracen and Northern Star Resources boss Raleigh Finlayson would cornerstone A$20.8 million capital raising and take over as managing director next year.

The deal also included a $3 million investment by Northern Star and share consolidation.

Shareholders at Friday's annual general meeting approved Finlayson's investment and the consolidation, as well as the appointment of decorated former Fortescue Metals Group CEO Nev Power and corporate lawyer Michael Bowen as directors.

Nic Earner, representative of major shareholder Alkane Resources, and Craig Bradshaw have stepped down.

Finlayson will take over from long-time MD Michael Fowler in March next year, after he completes a six-month Advanced Management Program at Harvard. He will consult to the company until then.

Though it was overwhelmingly approved, one shareholder described the issue of 245 million unlisted options to Finlayson as a consultancy fee as "obscene".

"It is a big number, but we thought long and hard - he's definitely worth it," Genesis chairman Tommy McKeith said.

"We see that compensation being fair at this point.

"I see that as an opportunity to get Raleigh totally behind Genesis."

McKeith noted that Finlayson was also making a significant financial commitment to the company via the placement.

"From our view, it was a slam dunk and fair compensation," McKeith said.

"We've got ourselves the best MD in the gold space."

Earner said Alkane was willing to be diluted from 19.8% to 15% and give up its board seat given the more than doubling in the Genesis share price since the news was announced.

"That's considerable value created for us all should we decide to sell," he said.

"It's a reasonable price to pay to secure incredible talent and clearly the market sees the same."

Fowler will step down after 14 years at the helm of Genesis but will spend time with Finlayson to ensure a smooth transition.

"I'm leaving Genesis in extremely capable hands," he said.

"It's an exciting time to be a Genesis shareholder."

Genesis owns the 1.6 million ounces Ulysses project near Leonora, just 15km from the station where Finlayson grew up.


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