- Mining company Genesis Minerals (GMD) has completed its 100 per cent acquisition of the Kookynie Gold Project in Western Australia
- The company first announced that it had exercised its option to fully acquire the project on December 21, 2020
- Since satisfying all transaction conditions, Genesis has paid $10.5 million as well as a net smelter royalty to project vendors
- The company is awaiting lab results from drilling samples, which it expects will help Genesis start strong in 2021
- Genesis Minerals closed in the grey, to trade for 7.4 cents per share
Mining company Genesis Minerals (GMD) has completed its 100 per cent acquisition of the Kookynie Gold Project in Western Australia.
The company first announced that it had exercised its option to fully acquire the project on December 21, 2020. Since all conditions precedent to the transaction have now been satisfied or waived, Genesis was able to complete the acquisition.
As consideration for the acquisition, the company paid a total of $10.5 million to the project vendors. Genesis also granted the vendors a one per cent net smelter royalty on future gold production, capped at $5 million.
Genesis Minerals’ Managing Director, Michael Fowler, called the completed acquisition another pivotal step in the company’s plans for developing a significant new stand-alone gold mine near Leonora.
“Since first signing the Option Agreement over the Kookynie Project in June, we have undertaken a significant amount of due diligence exploration work, which has supported our view that the Kookynie tenements can provide the springboard for Genesis to develop the Greater Ulysses Gold Project as a significant, standalone mining and processing operation,” he said.
“We have already announced a host of outstanding drilling results from drilling within the known resources at the Admiral, Clark, Butterfly, and Orient Well deposits, providing us with a high degree of confidence in the existing JORC Resources and in the potential to grow these resources,” he added.
Thus far, Genesis Minerals has already drilled approximately 32,000 metres of the planned 35,000 metre program. The company is now awaiting lab results from a large number of drilling samples, which it hopes will generate strong news-flow well into 2021.
Genesis Minerals closed in the grey, to trade for 7.4 cents per share.