Genesis Minerals has signed an agreement to acquire 100% of the Kookynie gold project in Western Australia from A&C Mining Investment and and Ms Yijun Zhu.

The gold project is is located nearly 200km north of Kalgoorlie and around 40km south of Leonora in the Eastern Goldfields region.

Covering an area of 248km2, the project consists of 83 tenements including 34 mining leases, 11 exploration licences, 22 prospecting licences, four general purpose licences and 12 miscellaneous licences.

With the acquisition, Genesis now controls an area of over 650km2 through its 100% ownership of Ulysses, the Desdemona South JV and Kookynie.

The Kookynie gold project is also located immediately south-east of its 100%-owned Ulysses gold project in Western Australia.

It includes a JORC 2012 compliant Indicated and Inferred Mineral Resource totalling 8.53Mt at 1.5g/t for 414,000oz gold.

Besides, the project is said to contain numerous exploration targets with potential to expand the existing resources and deliver new discoveries.

Genesis raises capital to support the Kooyknie acquisition

The acquisition is expected to advance Genesis’ growth strategy in the prolific Leonora district.

Genesis Minerals stated: “The acquisition also consolidates Genesis’ ownership of the southern extension of the highly endowed Leonora Gold Corridor, including tenements that are immediately contiguous with the southern boundary of its Ulysses Gold Project and which cover a 15km strike length of the Ulysses-Orient Well trend – including three shallow gold deposits with a combined Mineral Resource of 246,000oz.”

The consideration to be paid for the project acquisition is AUD13.5m ($9.3m) that includes an AUD3m ($2m) upfront cash and share payment with the full balance of AUD10.5m ($7.2m) due in six months.

Separately, the company has a capital raising of AUD19.5m ($13.5m) to support its acquisition of the Kooyknie gold project.