Australian gold exploration and mining company Genesis Minerals has agreed to acquire the Bruno-Lewis and Raeside gold projects from KIN Mining for A$53.5m ($36m).

Under the terms of the agreement, Genesis will purchase the two projects in exchange for an A$15 cash payment and issue 21,917,532 new shares.

The Bruno Lewis and Raeside gold projects are located in Western Australia’s Leonora District.

The two projects are expected to provide scale, shallow mineralisation, low strip ratios and significant quantities of oxide ore that will enable high milling productivity.

They will add around 4% to Genesis’ Mineral Resources, which is currently at 15Moz.

The acquisition is expected to be completed by March 2024, subject to the conditions, including necessary consents and approvals for the transfer of tenements, among other conditions.

Genesis Minerals managing director Raleigh Finlayson said: “With more than 12Mt of open pit Resources, Bruno-Lewis has the potential to supplement the eventual, sustainable re-start of our currently idled Laverton mill.

“Raeside offers supplementary high-grade open pit ore to our Leonora mill just 10km away. We look forward to reporting maiden Reserves for these new, value-add deposits and bolting them into our five-year outlook, to be unveiled in the new year.”

Bruno-Lewis, also known as the Cardinia gold project, is located within the northeastern goldfields in the Archaean Yilgarn Block on the Leonora and Laverton.

It comprises Mineral Resources of 12.6Mt @ 1.0g/t for 408koz, including oxide Resources of 3.2Mt @ 1.2g/t for 119koz

Raeside project comprises two tenements, M37/1298 and E37/1300, located around 10km east of Leonora and hosts four gold deposits within the project area.

It comprises 3.1Mt @ 2.0g/t for 202koz, including oxide Resources of 0.6Mt @ 1.9g/t for 34koz.

The open pit Mineral Resources across the two projects are estimated at 15.7Mt @ 1.2g/t for 610koz, which equates the consideration to A$88 per ounce.

Genesis said the Bruno-Lewis project will supplement the eventual, sustainable re-start of its 2.9Mtpa Laverton mill, which is located 60km away and currently idled.

Also, Raeside will provide supplementary high-grade open pit ore to the operating 1.4Mtpa Leonora mill, which is located 10km away from the operation, said the Australian company.