Genmin Raises A$25.7M to Propel Baniaka Iron Ore Project Toward FID

Equity Raising to Fund Baniaka Development

Genmin Limited (ASX, GEN) has announced a significant equity raising of approximately A$25.7 million through a two-tranche placement priced at A$0.01 per share. This capital injection is aimed at progressing the company’s flagship Baniaka iron ore project in Gabon toward a final investment decision (FID) targeted for mid-2026. The placement will issue around 2.57 billion new shares, accompanied by attaching options exercisable at A$0.015 and piggyback options exercisable at A$0.02, subject to shareholder approval.

Strategic Collaboration and Infrastructure Agreements

Central to Genmin’s development strategy is its collaboration with PowerChina, a tier-one infrastructure contractor with extensive experience in Gabon. PowerChina is providing competitive engineering, procurement, and construction (EPC) proposals, alongside potential project funding avenues through Chinese institutional lenders. This partnership is expected to reduce capital expenditure and enhance project delivery efficiency.

Genmin has also secured long-term agreements for port and rail logistics, including a 15-year bulk logistics contract with Owendo Mineral Port and access to the Trans-Gabon Railway. These agreements leverage existing infrastructure, supporting a low-capital-cost, 5 million tonnes per annum (Mtpa) Phase 1 operation with scalability options beyond 10 Mtpa.

Experienced Leadership and Project Positioning

The company’s leadership team, led by Executive Chair Greg Lilleyman; who brings over 35 years of international mining experience including senior roles at Rio Tinto and Fortescue Metals Group; is steering the project through this critical funding phase. CEO Andrew Taplin and the board emphasize the project’s value proposition, a sustainable, low-cost producer of high-grade, greener iron ore (approximately 64-66% iron content), well-positioned to benefit from rising premiums as steelmakers transition to low-carbon feedstocks.

Use of Funds and Financial Discipline

Proceeds from the placement will fund ongoing pre-feasibility study (PFS) addendum works, corporate costs, general working capital, and repayment of director loans converted into equity. The company has implemented cost optimization measures targeting a 50% reduction in monthly expenses, with a 16% reduction already achieved and further savings anticipated. These efforts aim to preserve a strong financial runway to maintain project momentum toward FID.

Comprehensive Risk Disclosure

Genmin’s announcement includes an extensive overview of risk factors, reflecting the speculative nature of mining development in an emerging market. Key risks highlighted include project funding uncertainties, construction cost overruns, operational challenges, geopolitical and regulatory risks specific to Gabon, and commodity price volatility. The company also notes the potential for government participation in the project equity and evolving local policies that could impact export conditions.

Investors are cautioned that the completion of tranche 2 of the placement is subject to shareholder approval, and the company’s ability to continue as a going concern depends on successful capital raising and project funding. The company’s mineral resource estimates comply with Australian JORC standards but may not align with other international reporting codes.

Outlook and Market Position

With global steelmakers increasingly prioritizing high-grade, low-impurity iron ore to reduce carbon emissions, Genmin’s Baniaka project is strategically positioned to capture widening price premiums forecast over the coming decade. The company’s focus on sustainable mining practices and leveraging existing infrastructure offers a competitive edge in the evolving iron ore market.

As Genmin advances toward its FID milestone, market participants will be watching closely for updates on funding progress, feasibility study outcomes, and the evolving geopolitical landscape in Gabon.