Congratulations to Genesis Minerals Limited (ASX: GMD) on entering into a binding Scheme Implementation Deed with Magnetic Resources (ASX: MAU), under which Genesis proposes to acquire 100% of Magnetic.

Magnetic shareholders will receive $2.00 per share, representing a 35% premium to Magnetic’s 30 day VWAP and implying a fully diluted equity value of ~A$639m.

Magnetic owns the Lady Julie Gold Project, which has a Mineral Resource of 2.2Moz grading 1.8g/t. The transaction offers a clear pathway to supply incremental ore to Genesis’ operating 3Mtpa Laverton mill located ~20km away. There is also scope for substantial synergies and cost savings with Genesis’ recently acquired Laverton Gold Project, which adjoins Lady Julie.

Sternship is pleased to have acted as financial adviser to Genesis alongside Canaccord Genuity Australia. Broadstream Advisory acted as legal advisers.