Genmin Board Members Inject A$1 Million to Propel Baniaka Iron Ore Project
Genmin Limited has raised an additional A$1 million in unsecured loans from key board members to support working capital for its flagship Baniaka iron ore project in Gabon.
- A$0.5 million increase to existing loan from Board Chair Greg Lilleyman
- A$0.5 million new unsecured loan from non-executive Director John Hodder
- Loans accrue 12% interest and are repayable by June 2026
- Funds aimed at general working capital for Baniaka iron ore project
- Potential future conversion of loans to equity subject to approvals
Board Support Strengthens Financial Position
Emerging iron ore producer Genmin Limited (ASX – GEN) has secured a total of A$1 million in additional funding from two of its non-executive board members. This latest capital injection comprises a A$0.5 million increase to an existing loan from Board Chair Greg Lilleyman and a new A$0.5 million unsecured loan from non-executive Director John Hodder. Both loans are structured on arm’s length terms and are immediately available to bolster the company’s working capital.
Funding Focused on Advancing Baniaka Iron Ore Project
The funds will be directed towards general working capital needs as Genmin continues to progress its 100%-owned Baniaka iron ore project in Gabon, West Central Africa. Baniaka is positioned as a potentially significant new iron ore hub, with existing mining permits, environmental approvals, and infrastructure access already secured. The project aims to commence commercial production by late 2026, targeting an initial output of 5 million tonnes per annum with plans to scale up.
Loan Terms and Future Capital Structure Implications
Both loans carry an interest rate of 12% per annum, with interest capitalised quarterly if not paid in cash, and are repayable by 30 June 2026. Notably, Genmin retains the option to convert these loans into equity in the future, subject to regulatory and shareholder approvals. This flexibility could influence the company’s capital structure depending on how project financing evolves in the coming months.
A Vote of Confidence from Leadership
Genmin’s CEO Andrew Taplin described the loans as a clear vote of confidence from the board in both the company’s strategy and the Baniaka project’s potential. The involvement of senior board members in providing unsecured funding signals strong internal support during a critical phase of project development and financing discussions with external partners.
Looking Ahead
As Genmin advances towards securing project build financing, this injection of working capital provides a timely bridge. The company remains engaged with potential financiers to underpin the next stage of development, while maintaining regulatory compliance and shareholder engagement. Investors will be watching closely how these loans and potential equity conversions shape Genmin’s financial trajectory and project delivery timeline.
Bottom Line?
Genmin’s board-backed funding boost underscores confidence but raises questions on future equity dilution and financing strategy.
Questions in the middle?
- Will Genmin convert these loans into equity, and what impact would that have on shareholding?
- How soon can Genmin secure external project build financing to complement this working capital?
- What are the key milestones and risks ahead for the Baniaka iron ore project’s commercial production?
