(Adds details on deal, capital raising) Dec 12 (Reuters) - Gold...

(Adds details on deal, capital raising)

Dec 12 (Reuters) - Gold miner St Barbara Ltd (SBM) agreed on Monday to buy smaller peer Genesis Minerals Ltd (GMD) for A$541.3 million ($367.16 million) to focus on the highly prospective Leonora district of Western Australia.

The combination will also allow St Barbara leverage the Gwalia gold mine's balance sheet, the two Australian firms said in a joint statement after more than five months of talks.

Genesis shareholders will receive 2.0338 new fully paid St Barbara ordinary shares for each share held.

"Overall, the merger will either defer or eliminate ~A$400 million of capital expenditure, reducing near-term execution risk and funding requirements," the companies said.

Hoover House will target production of more than 300,000 ounces (koz) of gold per annum, compared with St Barbara's standalone full-year 2023 guidance of 145-160 koz for Leonora.

St Barbara will divest its non-Leonora assets into a new company, Phoenician Metals, which it intends to list on the Australian bourse. The company's non-Leonora assets include its Atlantic operations in Canada and Simberi in Papua New Guinea

St Barbara shareholders will own 38% of the combined entity, in addition to a direct 80% stake in Phoenician Metals.

Genesis will raise A$275 million to fund the merged entity and facilitate the transaction, the companies said. ($1 = 1.4743 Australian dollars)