From yesterday's paper. Some may have missed it.
Finlayson starts from the beginning with Genesis
Stuart McKinnon
Raleigh Finlayson is set to follow the lead of gold mining peer Bill Beament by taking the helm of a junior explorer and emerging with a substantial stake by pumping funds into its coffers.
The former Saracen Mineral Holdings boss will join gold play Genesis Minerals as managing director next year and will kick in $7 million of his own cash as part of a broader $20.8m funding package announced by the company yesterday.
Mr Finlayson’s foray into Genesis mirrors the recent move by former Northern Star Resources boss Bill Beament, who joined aspiring copper play Venturex Resources as managing director and became the major shareholder by investing $37.3 million into the explorer.
The moves highlights the pair’s desire to return to their entrepreneurial roots following the $16b merger of the two companies they previously led and turned into successful mid-tier miners.
The news coincides with Mr Finlayson’s resignation as an executive director of Northern Star Resources to complete a six-month advanced management course with Harvard University in the US.
However the company said he would rejoin the board in April next year.
Like news of Mr Beament’s arrival at Venturex in February, yesterday’s news that Mr Finlayson would be joining Genesis sent shares in the explorer surging.
Genesis skyrocketed 10.7¢, or 147 per cent, to 18¢ at the close after touching 21¢ in earlier trade.
Mr Finlayson will initially emerge with a 4.9 per cent stake in the explorer but could end up with 16.2 per cent based on the exercise of options and the vesting of performance rights.
It is understood Saracen’s business development team had previously run the ruler over Genesis’ flagship asset, the 1.6Moz Ulysses gold project 30km south of Leonora.
Saracen’s former chief operating officer Craig Bradshaw also sits on the board of Genesis as a non-executive director.
Some speculated yesterday Genesis could become part of a broader consolidation play involving other juniors that hold ground around Ulysses.
Genesis also revealed yesterday that Northern Star would subscribe for $3m worth of shares in a $16m placement, which would be followed by a $4.8m, one-for-30 rights issue priced at 6¢.
And the company will add more star power to its board with former Fortescue Metals Group boss Nev Power and corporate lawyer Michael Bowen taking part in the raising and joining as non-executive directors.
Mr Finlayson will replace Genesis’ existing managing director Michael Fowler after completing the Harvard course in March and will act as a part-time consultant to the company until then.
Genesis chairman Tommy McKeith said the proposal was an outstanding opportunity for Genesis shareholders.
“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,” he 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.”
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