- Genesis Minerals (GMD) shares spiked as much as 156 per cent after reporting a significant board overhaul and a $20.8 million strategic fundraise, backed by former Fortescue CEO Neville Power
- Previous Saracen Minerals and Northern Star Resources Managing Director Raleigh Finlayson will helm the company from March 2022 as a major shareholder
- Proceeds from the raise are set to go towards transforming Genesis into a “mid-tier Australian gold company”
- Mr Power and Western Australian corporate lawyer Michael Bowen have also been invited to sit on the board and are tipped to invest $1.6 million accumulatively
- Genesis Minerals shares are up 140 per cent to trade at 17.5 cents at 12:43 pm AEST
Genesis Minerals (GMD) shares spiked as much as 156 per cent after reporting a significant board overhaul and a planned $20.8 million strategic fundraise, backed by former Fortescue CEO Neville Power.
The goal to grow Genesis into a “mid-tier Australian gold company” has been declared by former Saracen Mineral Holdings and Northern Star Resources Managing Director Raleigh Finlayson, who will become a significant shareholder in GMD.
Mr Finlayson is set to invest $7 million in the ASX-lister and will take top spot at the company in March 2022 as part of the restructure, with his former company Northern Star slated to take up shares worth $3 million.
Mr Power and Western Australian corporate lawyer Michael Bowen have also been invited to sit on the board, following pledges for $1 million and $600,000 under the placement respectively.
This leaves shares worth roughly $4.4 million on offer for institutional and sophisticated investors under the placement, including current and proposed directors.
Additionally, existing GMD shareholders will also be invited to participate in a 1-for-30 non renounceable entitlement offer at 6c per share.
Proceeds from the raise are set to fuel exploration at Genesis’ Ulysses gold project in Western Australia, ongoing feasibility studies and general working capital.
Genesis Chairman Tommy McKeith, who is set to retain his position, said the company would have an “enviable team” in the boardroom.
“The combination of their experience and the funding package will position Genesis to maximise the opportunities at the Ulysses project as well as consider value-enhancing strategic acquisitions,” he said.
Genesis affirmed its largest shareholder, fellow ASX-lister Alkane, is supportive of the strategic investment and board changes and has agreed to cover any shortfalls under the proposed entitlement offer.
Michael Fowler is set to hold his position as Genesis Managing Director until Mr Finlayson takes over next year.
Genesis Minerals shares are up 140 per cent to trade at 17.5 cents at 12:43 pm AEST.