Genesis bulks up with Kookynie deal
Genesis Minerals has agreed to acquire the Kookynie gold project near Leonora in Western Australia, and will raise A$19.5 million to advance a standalone project at its adjacent Ulysses project (reports MiningNews)
26th June 2020
Resources Rising Stars
Genesis Minerals has agreed to acquire the Kookynie gold project near Leonora in Western Australia, and will raise A$19.5 million to advance a standalone project at its adjacent Ulysses project (reports MiningNews).
The company had entered into an agreement with A&C Mining and Yijun Zhu to acquire Kookynie, which has a resource of 8.53Mt at 1.5 grams per tonne gold for 414,000 ounces of gold.
Genesis will pay a $1 million option fee and can exercise the option within six months by paying $10 million cash and granting a 1% net smelter royalty on future gold production, capped at $5 million.
The company has also agreed to pay about $2 million in cash and issue 26.6 million shares to a third party to resolve proceedings and settle tenement plaints against A&C to ensure Genesis acquires clear title to the project.
Kookynie adjoins Genesis' Ulysses project to the southeast and boosts the resource of the Greater Ulysses project to 17Mt at 2.34gpt gold for 1.28 million ounces.
Genesis had been working on a feasibility study for Ulysses but will expand the study to include Kookynie.
Genesis managing director Michael Fowler said the "landmark" acquisition ticked every box for the company from a strategic, corporate, geological and tactical perspective.
"It provides the springboard for a significant reboot of the Genesis story and puts us on a firm growth trajectory towards the establishment of a significant new standalone gold mining and processing operation at Ulysses," he said.
"The acquisition consists of two distinct parts. The northern tenement package represents the immediate south-eastern extension of the Ulysses project, consolidating our ownership of this highly prospective gold corridor. It gives us an immediate opportunity to infill and extend the current resources at the Admiral, Butterfly and Clark deposits - drawing on the geological IP we have developed on our neighbouring ground at Ulysses.
"We see enormous potential to extend the existing Resources down-dip, to find new high-grade lodes just as we did at Ulysses, and to make potential new discoveries and find parallel structures along strike.
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