Genesis Minerals–Magnetic Resources deal: production and capex lens for mine planners
Reviewed by Tom Sullivan

First reported on MINING.com
30 Second Briefing
Genesis Minerals is acquiring Magnetic Resources for about A$639 million in a 70% cash, 30% scrip deal, paying A$1.40 plus 0.0873 Genesis shares per Magnetic share, a 25% premium to the last close. The transaction secures the 2.2-million-oz Lady Julie deposit at 1.8 g/t Au, 20 km from Genesis’ 3 Mtpa Laverton mill, enabling additional open-pit and underground feed into a larger integrated operation. Pro forma, Genesis will control 21 million oz of resources (5.2 million oz reserves) with a 275,000 oz/year production outlook across Laverton and Leonora.
Technical Brief
- Acquisition structured via a binding scheme of arrangement, requiring Magnetic shareholder approval to proceed.
- Consideration mix is A$1.40 cash plus 0.0873 Genesis shares per Magnetic share, about 70% cash-funded.
- Implied offer of A$2.00 per Magnetic share equates to ~A$639 million total transaction value.
- Premium metrics: 25% over last close and 35% over 30‑day VWAP, signalling strong competitive pricing.
- Lady Julie lies ~20 km from Genesis’ operating 3 Mtpa Laverton mill, enabling short‑haul trucking of ore.
- Lady Julie borders Genesis’ recently acquired Laverton gold project, allowing shared pit envelopes and haul infrastructure.
- Genesis now controls four Laverton‑area assets, three of which remain at early‑exploration stage for future feed.
- Market reaction diverged: Magnetic’s market cap lifted to ~A$621.9 million while Genesis eased to ~A$8.2 billion.
Our Take
Within our 1054 Mining stories, Western Australia gold deals of this A$639 million scale are relatively uncommon, signalling Genesis Minerals’ move into the same capital-weight bracket as established Leonora district consolidators rather than junior developers.
The pro forma 21 million oz resource and 5.2 million oz reserve base positions Genesis among the larger gold holders in our database, which typically gives operators more optionality to sequence higher-grade Laverton-area ore through a 3 Mtpa mill and defer marginal feed when costs or prices move against them.
The Lady Julie project’s 2.2 million oz at 1.8 g/t, only 20 km from the Laverton mill, suggests a near-term pathway to trucking-based integration rather than greenfield plant build, a pattern seen in several other Western Australia gold items where short-haul distances materially reduce upfront capex and schedule risk.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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