THE BOURSE WHISPERER: Genesis Minerals (ASX: GMD) secured a $6 million cornerstone investment by Australian gold producer Alkane Resources (ASX: ALK).
Genesis minerals said the Alkane investment was part of a $7.5 million capital raising initiative aimed at fast-tracking the next phase of resource and exploration drilling at the company’s 100 per cent-owned Ulysses gold project in Western Australia.
Genesis said the proceeds of the capital raising would strengthen its balance sheet and allow it to progress a multi-pronged exploration and development strategy at Ulysses including resource in-fill work, resource extension drilling and ongoing Feasibility Study work, while also pursuing other strategic acquisition and growth opportunities in the Leonora region.
“We are pleased to have secured a strategic partnership with a prominent and well-regarded Australian gold miner in Alkane to become our cornerstone shareholder through this landmark capital raising initiative,” Genesis Minerals managing director Michael Fowler said in the company’s announcement to the Australian Securities Exchange.
“The proceeds of this placement will de-risk our balance sheet and give us the flexibility to pursue an aggressive exploration, development and growth strategy in the Leonora region, underpinned by our existing high-grade Resource at the Ulysses gold project.
“We will pursue a multi-pronged strategy which includes in-fill drilling to de-risk the Resource and underpin ongoing Feasibility studies, extensional drilling to grow the Resource base and regional exploration to expand our overall Resource base.
“At the same time, we will have the capacity to pursue acquisition opportunities where these make sense, to expand our sphere of influence as an emerging gold company.
“We welcome Alkane as a new major shareholder and partner, with a wealth of knowledge and skills that is now available to Genesis.”