- Genesis Minerals (GMD) has received firm commitments to undertake a $10 million share placement
- All up, 166.7 million fully paid ordinary shares will be issued to professional and sophisticated investors at 6 cents
- This price represents a 4.8 per cent discount to Genesis’ close of 6.3 cents on April 19
- Genesis has also revealed it will be undertaking a share purchase plan (SPP) to raise up to $1 million
- Eligible shareholders will be able to purchase up to $30,000 worth of shares without incurring any transaction or brokerage costs
- Genesis will use the money to fund and advance exploration at the Ulysses, Barimaia and Desdemona South JV gold projects
- Genesis has ended the day a slight 1.59 per cent in the green with shares trading at 6.4 cents
Genesis Minerals (GMD) has received firm commitments to undertake a $10 million share placement.
The company entered a trading halt on April 20 but did not disclose how much it intended to raise or what it would use the funds for.
All up, 166.7 million fully paid ordinary shares will be issued to professional and sophisticated investors at 6 cents.
This price represents a 4.8 per cent discount to Genesis’ close of 6.3 cents on April 19 and a 5.9 per cent discount to the five-day volume-weighted average price of 6.4 cents.
Subject to shareholder approval, Alkane Resources (ALK) will subscribe for $2.18 million to maintain their 19.84 per cent interest in Genesis.
Shares under the placement are expected to be allocated on April 30.
Genesis has also revealed it will be undertaking a share purchase plan (SPP) to raise up to $1 million.
Eligible shareholders will be able to purchase up to $30,000 worth of shares without incurring any transaction or brokerage costs.
Up to 16,666,667 shares will be on offer priced at 6 cents each.
The share purchase plan is expected to open on April 30, close on May 21 and shares are expected to be issued on May 28.
Genesis will use the money from the placement and SPP to fund the next phase of resource growth and advance its Ulysses Gold Project in WA.
Additionally, money will also go towards the Desdemona South JV and Barimaia gold projects.
“Investors can look forward to a two-pronged approach of strong exploration news flow as we embark on an aggressive drilling push aimed at expanding the existing 1.6 million resource [at Ulysses] plus an emerging development story as we complete our feasibility studies,” Managing Director Michael Fowler said.
“The upcoming exploration program will see 40,000 metres of reverse circulation and diamond drilling aimed at growing the resource to the next level plus 25,000 metres of aircore drilling targeting new discoveries within the Ulysses to Orient Well mine corridor and the new Puzzle-Puzzle North corridor,” he added.
Genesis has ended the day a slight 1.59 per cent in the green with shares trading at 6.4 cents in a $122.4 million market cap.