Magnetic Resources’ Lady Julie gold patch finds a suitor in $639m Genesis Minerals deal

Genesis Minerals has emerged as the successful bidder for Magnetic Resources’ neighbouring Lady Julie project in Laverton, tallying up another acquisition for the busy Raleigh Finlayson-led gold miner.

Genesis told investors on Monday it had reached a deal with Magnetic’s board to buy the company under a cash and scrip deal worth about $639 million. Shares in the listed target rocketed 25 per cent on confirmation of the deal.

The West Australian revealed last year that several interested parties had been lining up as potential suitors for the 2 million ounce gold patch. Since then Genesis locked away its acquisition of Focus Minerals’ Laverton gold project, which shares a boundary with Lady Julie, in May last year for $250M.

Ounces from Magnetic’s project could be fed into Genesis’ Laverton mill — acquired from Dacian Gold in late 2023 — about 20km away.

The miner’s anchor project is the famed Leonora gold mine Gwalia, which was acquired from St Barbara in July 2023 amid a plethora of deals driven by the former Northern Star Resources boss.

Since last year Genesis’ share price has vaulted nearly 130 per cent off the back of a quicker-than-expected ramp-up at the site and a roaring gold price. The combination has also launched the paper wealth of Mr Finlayson into one of WA’s best-paid mining bosses.

“This transaction creates substantial value for both groups of shareholders, delivering genuine synergies while combining the right assets with the right people,” he said on Monday.

“Shareholders of both companies will benefit by leveraging Genesis’ existing infrastructure, including the 3Mtpa Laverton mill, and through the savings which would flow from a single open pit development.”

Genesis shares were up 6.77 per cent on the news to $7.34 in an $8.38 billion market capitalisation.

The deal follows a strong December quarter for Genesis when it produced 74,261 ounces.