Sydney, June 10, 2026, 07:06 AEST
Genesis Minerals Ltd is set to wrap up its Magnetic Resources deal as the ASX opens Wednesday, but shares slipped with other Australian gold stocks in the last session. GMD closed at A$5.21 on Tuesday, down 2.8%, after the Supreme Court of Western Australia cleared the scheme of arrangement for Genesis to buy Magnetic Resources NL.
ASX was sitting in pre-open at the dateline. Regular trading in Sydney starts at 09:59:45 AEST, so orders placed before that don’t match. That means Tuesday’s close remains the current price until the market kicks off.
Timing is key here. Magnetic said it plans to file the court orders with the Australian Securities and Investments Commission on Wednesday, which would make the scheme effective. The company expects its shares will be suspended from trading on the ASX at the close on Wednesday. New Genesis shares are set to begin trading on a deferred-settlement basis Thursday. That lets trading begin before the regular settlement process finishes.
Bullion dropped as the deal hit. Spot gold lost 1.5% to $4,264.70 an ounce on Tuesday. U.S. August gold futures settled down 1.8%. Traders moved out of the metal after U.S. rates and inflation data raised worries.
Genesis moved to issue as many as 28,023,576 new ordinary shares on June 22. The shares are meant to serve as scrip for the Magnetic buyout. The company assigned an estimated value of A$192.5 million to the share payment. Genesis said shareholder approval isn’t needed.
Magnetic shareholders were due to get A$1.40 in cash plus 0.0873 new Genesis shares per Magnetic share, according to terms laid out in February. That works out to about 70% cash and 30% scrip as the default offer. There was an option to choose all cash or all shares, but those elections were subject to scale-back and capped at a total cash pool of A$445 million.
Genesis Executive Chair Raleigh Finlayson said then the deal created “substantial value for both groups of shareholders.” Magnetic Managing Director George Sakalidis said the review looked to “unlock value for our shareholders.”
Shares in Genesis moved along with other gold stocks. Genesis traded in a range of A$4.90 to A$5.24 on Tuesday, exchanging 6.26 million shares. Evolution Mining ended down 3.67%. Northern Star Resources closed off 3.32% and Ramelius Resources finished 3.93% lower. Pressure landed on most ASX-listed gold producers.
Australian shares ended lower. The S&P/ASX 200 lost 20.90 points, down 0.24% to 8,604.20. Gold, metals and mining, and materials weighed on the index.
The outlook for the next sessions is still murky. Genesis said the total new shares isn’t locked in yet, mentioning possible changes tied to Magnetic shareholder elections and trading in Magnetic shares before the record date. Another slide in gold prices could keep the sector under pressure, even if the deal schedule holds.
Genesis and Magnetic are up against some immediate dates. ASIC lodgement is due Wednesday, and Magnetic faces suspension from the ASX at the end of trade that day. The scheme record date falls on June 15, with implementation planned for June 22. Genesis shareholders now see the shares trading after a closed growth deal, but with gold market conditions turning tougher.
