Genesis Minerals (ASX: GMD) is set to acquire Magnetic Resources (ASX: MAU) for approximately A$639 million in a scrip and cash deal, significantly bolstering its production outlook and resource base by adding Magnetic's Lady Julie Gold Project to its Laverton operations.
The offer values Magnetic at approximately A$639 million, representing a 25% premium to its close price and a 35% premium to its 30-day VWAP.
Consideration is a mix of approximately 70% cash (A$1.40 per share) and 30% scrip (0.0873 new Genesis shares per Magnetic share.
Located approximately 20km from Genesis' Laverton Mill, Magnetic's Lady Julie Gold Project hosts a ~2.2 Moz Resource at 1.8 g/t Au.
Synergies are expected through integrating Lady Julie into a larger open-pit operation with Genesis's adjacent Focus Minerals land, potentially reducing costs and enabling higher throughput.
Pro forma Mineral Resources for Genesis will rise to approximately 21.0 Moz, with Ore Reserves increasing to 5.2 Moz.
Accelerating ASPIRE 500 Growth Plan
The transaction is expected to accelerate Genesis' ASPIRE 500 growth plan by expanding its resource base and production outlook.
Potential exists to expand Laverton milling capacity to 4.5-5.0 Mtpa, contributing to a pro-forma group milling capacity of up to 8-9 Mtpa.
Lady Julie's development is de-risked by leveraging Genesis' existing processing and mining services.
Funding and Timeline
The cash component of the acquisition will be funded from Genesis's existing cash reserves (~A$690 million pre-transaction) and an undrawn facility, maintaining pro-forma liquidity of ~A$280 million.
The deal is expected to be completed around June 2026, subject to Magnetic shareholder approval, court approval, and ACCC clearance.
Magnetic shareholders will own approximately 2.4% of the pro-forma Genesis post-completion.
Genesis Acquires Magnetic, Bolstering Portfolio
Genesis Minerals' proposed acquisition of Magnetic Resources for A$639 million offers a significant premium to Magnetic shareholders and strategically enhances Genesis's gold asset portfolio.
The deal is expected to drive production growth and unlock synergies, aligning with Genesis's ASPIRE 500 strategy, though regulatory approvals and integration execution remain key factors.
