PERTH (miningweekly.com) – ASX-listed Genesis Minerals has successfully completed its one-for-six fully underwritten non-renounceable rights issue, raising A$9.5-million before cost.

The rights issue formed part of a greater A$19.5-million capital raise to fund the acquisition of the Kookynie gold project, adjacent to its flagship Ulysses gold project, in Western Australia.

Genesis said on Thursday that the new shares would be issued on July 20, with normal trading to start on July 21.

Following the share placement, shareholder Alkane Resources, which acted as the priority sub-underwriter to the entitlement offer, will hold a 15.32% interest in the company, and subject to shareholder approval, Genesis would issue the company a further 104.6-million shares, at a price of 4.2c each, to increase its shareholding to 19.9%.

MD Michael Fowler told shareholders that the proceeds from the rights issue and the recently completed A$10-million share placement to institutional and sophisticated investors, has put Genesis in a strong financial position.

“We see this as a real vote of confidence in our recently announced acquisition of the Kookynie gold project, which forms part of the strategy to rapidly grow our resource base and achieve our goal of building a substantial new gold project near Leonora.

“We have already commenced work on a feasibility study targeting the development of standalone operation at the enlarged Ulysses project, scheduled for completion in the first quarter of 2021.

“This study will incorporate the newly acquired resources and assets from the Kookynie gold project and build on the significant work Genesis has already completed on mining the Ulysses deposit.”

The Kookynie tenement package includes a Joint Ore Reserves Committee-compliant indicated and inferred resource of 8.53-million tonnes, at 1.5 g/t gold for 414 000 oz of gold. As a result of the acquisition, the mineral resource in the Greater Ulysses project would now increase to 17-million tonnes, at 2.34 g/t gold for 1.28-million ounces.

Fowler said that the company was looking forward to getting the first drill rig into the field in the coming week, and launching a large exploration campaign across the Kookynie project.