Genesis Minerals (ASX: GMD) has made a strategic move to boost its WA goldfields portfolio, acquiring the historical Laverton gold project from Focus Minerals (ASX: FML).
The $250 million cash deal will consolidate the Laverton assets of Focus and Genesis, which include the recently restarted 3 million tonnes per annum Laverton mill.
Genesis, which sees the acquisition fitting into its “ASPIRE 400” accelerated growth strategy, will also take ownership of the project’s site infrastructure.
Substantial gold resource
Genesis managing director Raleigh Finlayson said Laverton was the perfect bolt-on acquisition for the company.
“It delivers a substantial 4 million ounce resource with immense exploration upside right next to our Laverton mill,” Mr Finlayson said.
“It [also] 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.”
Unlocking synergies
Genesis expects the acquisition will unlock significant synergies including the optimum pairing of deposits and regional processing infrastructure.
“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.”
Historical production
The Laverton project has historically produced approximately 3.6Moz of gold and, in addition to the sizeable mineral resource, the project includes 455 square kilometres of prospective gold tenure that offers substantial exploration upside both in-mine and regionally.
“We are extremely pleased with the outcome achieved in the sale of Laverton and believe the consideration payable represents compelling value to our shareholders,” Focus executive chair Wanghong Yang said.
“Proceeds from the sale of Laverton will strengthen the financial position of the company as it continues with development at the Bonnie Vale underground mine and open-pit mining operations at the Coolgardie gold project.
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