Genesis Resources to buy partner's stake

Genesis Resources Ltd will terminate a joint venture agreement with Western Desert Resources Ltd after acquiring its interest in the companies' joint venture tenements in Queensland and the Northern Territory.

Western Desert Resources' base metals arm has agreed to transfer its 45 per cent interest in the EPM 15771 tenement at Gladstone, Qld and the EL 24814 tenement at McArthur River, NT to Genesis, giving newly listed Genesis a 100 per cent stake in these manganese projects.

Genesis will pay Western Desert Resources $750,000 cash as consideration.

"This agreement represents a significant milestone in the company's strategy to own and control its projects," Genesis said in a statement on Wednesday.

Genesis managing director Pedro Kastellorizos said the company aimed to aggressively explore and develop the manganese-prospective tenements.

Its initial focus, however, was to obtain approvals for its Fenn Gap iron ore project in the NT, with a view to commencing drilling on site in early 2010.

Genesis last month completed a $4 million initial public offer that was oversubscribed.

Shares in Genesis were steady at 18 cents at 1242 AEDT while Western Desert shares were down half a cent at 58.5 cents.