Former Saracen and Northern Star boss Raleigh Finlayson is set to become managing director of Genesis Minerals following his contribution to a $20.8 million equity raising by the company.
Finlayson has contributed $7 million of shares and Northern Star will subscribe to $3 million of shares out of a $16 million share placement at $0.06 per share.
The funding package is subject to shareholder approval and will be used to advance the Ulysses gold project in Western Australia through exploration and feasibility studies.
Ulysses’ feasibility study was originally targeted for the September quarter of 2021 but will now be delayed due to the strengthened balance sheet under the raising along with changes to the board and management.
As part of the board restructure, current managing director Michael Fowler will remain at the company until Finlayson takes over in March 2022.
Genesis has also appointed former Fortescue Metals Group managing director and chief executive officer Neville Power as a non-executive director of the company’s board, who will participate in the funding package.
“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,” Genesis non-executive chairman Tommy 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.”
Corporate lawyer Michael Bowen has also joined the company’s board as a non-executive director as part of the funding package.
The mineral resource for Ulysses currently sits at 27.3 million tonnes at 1.8 grams per tonne of gold for 1.6 million ounces.