Genesis raises $5m

Perth-based Genesis Minerals has received commitments to raise $5 million through a share placement, with the funds to be spent on a drilling program and a feasibility study at its Ulysses gold project.

The shares will be sold at 3.2 cents each, with Argonaut Securities acting as the lead manager to the placement.

The drilling will be focused on four high-grade mineralised shoots that sit below the current Ulysses resource area and other potential high-grade shoots along strike to the east.

Genesis managing director Michael Fowler said the company was delighted by the strong level of support the share placement received.

“We had an overwhelming response from both institutional and retail investors wanting to participate in the raising, which is a testament to the outstanding prospectivity of the Ulysses gold project,” he said.

“The placement was significantly oversubscribed, and I would like to sincerely thank everyone who participated in the raising for their support.”

Mr Fowler said investors could look forward to strong news-flow in the weeks and months ahead.

“A diamond rig arrived on site this week, joining the RC rig, which has been working since early March,” he said.

“We also anticipate adding another drilling rig at the end of the month, and we expect all three rigs to be operating for a significant period of time as we work hard to grow the existing resource and lay the foundations for a significant new Australian gold project.”

Shares in Genesis were down 2.6 per cent at 3.7 cents at 1pm AEST.