Blumont has now acquired 12.75% of Genesis as takeover process progresses

BLUMONT Group, which is in the midst of a takeover bid for all the shares of Genesis Resources, said on Friday that it has acquired, or receive acceptances for, 12.75 per cent of the Australian-listed miner so far.

Blumont on Friday agreed to subscribe for 15 million ordinary shares of Genesis at A$0.10 (S$0.108) apiece, representing a 66.7 per cent premium over the average price of Genesis shares on July 31.

This represents 7.29 per cent of Genesis' enlarged share capital. It has also received acceptances for its takeover bid representing about 5.88 per cent of the company's shares.

To pay for the consideration amount of A$1.5 million, Blumont will issue 75 million new shares to Genesis at A$0.02 apiece - a premium of 20.44 per cent over its value-weighted average price on Dec 11.

Under the agreement, Genesis could sell these shares on the market, but only use the proceeds for advancing its Plavica Project in Macedonia or other projects that have to be first approved by Blumont.

Genesis Resources has a portfolio of quality gold, iron, manganese, uranium and base metal (copper-zinc-silver) in northern and central Australia.

Blumont shares last traded at S$0.018 on Thursday.