22/09/2021 - 11:30

Finlayson to lead Genesis Minerals

22/09/2021 - 11:30

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Raleigh Finlayson is set to lead Genesis Minerals after agreeing to invest $7 million in the local gold explorer, as part of a broader raising backed by Nev Power and Michael Bowen.

Raleigh Finlayson will join Genesis as managing director no later than March next year. Photo: Gabriel Oliveira

Raleigh Finlayson is set to lead Genesis Minerals after agreeing to invest $7 million in the local gold explorer, as part of a broader raising backed by Nev Power and Michael Bowen.

This news sent Genesis’ shares soaring on the ASX this morning, up 180 per cent to trade at 21 cents.

The funding package consists of a $16 million share placement and $4.8 million rights issue, which will in part be used to explore Genesis’ Ulysses gold project in Western Australia.

Mr Finlayson is leading the placement with a $7 million investment and is expected to join Genesis as managing director no later than March next year.

He will replace Michael Fowler who has served in the role since 2007.

The former Saracen Mineral Holdings boss, who will be engaged as a part-time consultant to Genesis until his appointment, also has the right to be issued with 245 million unlisted options exercisable at 10.5 cents.

His remuneration as managing director will include a $300,000 salary, as well as 30 million performance rights tied to the Ulysses project.

Meanwhile, messrs Power and Bowen will subscribe for $1 million and $600,000 in Genesis shares, respectively, and will join the board as non-executive directors. The duo will also be issued with 15 million options, exercisable at 10.5 cents.

They replace Craig Bradshaw and Nicholas Earner, who will retire from the board in November.

Tommy McKeith will continue as non-executive chairman of Genesis and Gerry Kaczmarek as a non-executive director.

“Raleigh is a highly successful gold miner with an exceptional track record of creating value for shareholders, growing Saracen from a junior explorer and developer into a $6 billion company at the time of its merger with Northern Star,” Mr McKeith said.

“With Raleigh working alongside Neville, whose vast experience and achievements are widely acknowledged across the Australian business spectrum, and Michael, who is one of Perth’s most highly regarded corporate lawyers, Genesis will have an enviable team in the boardroom.

“The combination of their experience and the funding package will position Genesis to maximise the opportunities at the Ulysses project as well as consider value-enhancing strategic acquisitions.”

Mr Finlayson follows in similar footsteps to Bill Beament who earlier this year left the helm of Northern Star Resources to join local copper explorer Venturex Resources (recently renamed Develop).

Northern Star, which merged Saracen in February, will subscribe for $3 million in Genesis shares.

The West Perth-based explorer intends to terminate an existing subscription agreement with its biggest shareholder, Alkane Resources, after completing the equity raising. 

Genesis said Alkane strongly supported the investments and board restructure, and had agreed to subscribe for any shortfall in funds from the rights issue.

About 266.6 million shares will be issued through the placement and 80 million shares through the 1-for-30 rights issue, both priced at 6 cents a share.

The offer represents an 18 per cent discount to Genesis’ closing price on September 21.

Participants will also receive one free attaching option for every two shares subscribed for, exercisable at 10 cents and with a two-year expiry.

Today's proposal is subject to shareholder approval, to be sought at Genesis' AGM on November 19.

Its shares were up 140 per cent at 1pm AEST to trade at 18 cents.

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