Genmin Limited has locked in A$25.7 million through a two-tranche placement, including significant director loan conversions, to advance its flagship Baniaka iron ore project towards production.
- A$25.7 million raised via two-tranche placement at A$0.01 per share
- Directors convert A$8.3 million in loans to equity, signaling strong board confidence
- Funds earmarked for Baniaka project final investment decision and pre-feasibility study completion
- Placement includes attaching options and broker options, subject to shareholder approval
- Major shareholders, including Tembo Capital, indicate support for placement resolutions
Capital Raise to Accelerate Baniaka Development
Genmin Limited, an emerging iron ore producer focused on Gabon, has announced firm commitments to raise approximately A$25.7 million through a two-tranche placement priced at A$0.01 per new share. This capital injection is designed to propel the company’s flagship Baniaka iron ore project towards a final investment decision and subsequent project financing.
The placement is notable for the substantial participation of Genmin’s directors, who are converting A$8.3 million in outstanding loans into equity. Executive Chair Greg Lilleyman and director John Hodder are leading this conversion, underscoring the board’s confidence in the project’s potential and the company’s strategic direction.
Structure and Shareholder Support
The placement comprises two tranches, an unconditional first tranche raising approximately A$1.32 million, and a second tranche contingent on shareholder approval, expected to raise around A$24.4 million. Investors subscribing to the placement will receive attaching options exercisable at A$0.015, with additional piggyback options available if exercised early, providing potential upside for shareholders.
Major shareholder Tembo Capital, holding over 40% of shares, has signaled its intention to support the placement resolutions at the upcoming extraordinary general meeting scheduled for 16 December 2025. Other key shareholders and directors have also indicated their backing, which bodes well for the approval process.
Strategic Use of Funds and Project Outlook
Proceeds from the placement will be allocated to advancing the Baniaka project through the completion of a pre-feasibility study addendum, covering corporate costs, repaying creditors, and converting director loans to equity. Baniaka, situated in southeast Gabon near established infrastructure, holds a 20-year mining permit and environmental approvals, positioning it as Gabon’s first commercial iron ore mine.
Genmin aims to commence commercial production at Baniaka by late 2026, initially targeting 5 million tonnes per annum with plans to scale to at least 10 million tonnes. The successful completion of this capital raise and subsequent project financing will be critical milestones in realising this vision.
Looking Ahead
With Foster Stockbroking and Canaccord Genuity acting as joint lead managers, Genmin is well-positioned to execute the placement and move forward with its development plans. The company’s ability to secure shareholder approval and finalise project financing will be closely watched by investors eager to see the transition from development to production.
Bottom Line?
Genmin’s successful placement and director loan conversions set the stage for a pivotal phase in Baniaka’s journey to production.
Questions in the middle?
- Will shareholder approval be secured smoothly for the second tranche and director participation?
- How soon can Genmin finalise project financing following the placement?
- What are the risks and contingencies if Baniaka’s final investment decision faces delays?