News - Genesis Resources bags A$1.8M from share placement

Genesis Resources (ASX: GES) has raised A$1.8 million through a share placement to sophisticated investors to fund accelerated drilling at the Plavica Gold-Silver-Copper Project in eastern Macedonia.

Investors subscribed for a total of 18 million shares at $0.10 each, a 6.9% discount to the volume weighted average price of Genesis shares during the 30 trading days up to and including 6 December 2012.

Genesis recently began a drilling program at one of the seven concession licence areas over the Plavica Project.

The company considers this single concession licence a key area with the most geologically valuable potential within the overall Plavica Project.

The seven concession licences have been granted to Genesis’ joint venture partner for a term of four years to April 2014.

With this in mind the company decided to expedite its drilling programs at the Plavica Project in 2013, to meet the minimum drilling requirements for the six other concession licences.

Genesis plans to begin drilling programs at all seven concession licences from February 2013, and will undertake a total of 44,000 metres of reverse circulation drilling and 22,000 metres of diamond core drilling in 2013.

These drilling programs will be designed to progress the Plavica Project through to a final Feasibility Study.


Plavica Project

The Plavica Project is the site of historic mining activity extending back to Roman times.

More recently, the project has been the subject of substantial exploration by parties including the Yugoslav Government and Rio Tinto (ASX: RIO), confirming its significant potential.

Golder Associates has begun a Scoping Study over the Plavica Project focused primarily on moving Genesis towards a Prefeasibility Study stage, and subsequently to a final Feasibility Study.


Takeover interest

Genesis’ assets are generating outside interest with the company receiving a takeover bid by Clancy Exploration during the 2012 financial year.

The Board unanimously recommended that all Genesis shareholders reject the offer and after two extensions, Clancy closed the takeover offer in August.

Clancy acquired only 8.9% of Genesis’ share capital.


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