Genmin Emerges Debt Free After A$25.7M Placement, Fast-Tracks Baniaka Iron Ore Project

Capital Raise Strengthens Balance Sheet

Emerging African iron ore producer Genmin Limited (ASX, GEN) has successfully completed the second and final tranche of its A$25.7 million placement, following shareholder approval at an extraordinary general meeting. This milestone has allowed the company to emerge completely debt free, with a robust capital base to advance its Baniaka iron ore project in Gabon.

The placement raised approximately A$24.4 million in the second tranche alone, with directors and senior management demonstrating strong confidence by investing over A$8.3 million collectively. This significant insider participation now sees directors holding around 25.1% of the company, underscoring alignment with shareholder interests.

Accelerating Baniaka Towards Production

With the balance sheet strengthened, Genmin is poised to accelerate critical workstreams including project financing activities, completion of the Baniaka Pre-Feasibility Study addendum, and progression towards a Final Investment Decision (FID). The company’s flagship Baniaka project, located near Franceville in southeast Gabon, is set to become the country’s first commercial iron ore mine, targeting an initial production rate of 5 million tonnes per annum with potential to scale to 10 million tonnes.

Genmin recently signed a Letter of Intent with SHICO, which intends to provide up to 60% of the required project financing, further de-risking the pathway to development. This partnership, combined with the fresh capital, positions Genmin well to meet its targeted commercial production start in late 2026.

Strategic Advisory and Market Positioning

To support its growth ambitions, Genmin has appointed Blair Sergeant, a seasoned mining executive with over 25 years’ experience, as Strategic Adviser. Sergeant’s role will focus on shareholder engagement and facilitating introductions to potential debt and equity investors, as well as advancing discussions with global trading houses. His expertise is expected to be instrumental in navigating the complex financing landscape ahead.

The placement also included the issuance of over 2.4 billion new shares and nearly 1.3 billion options to participants, with Foster Stockbroking and Canaccord Genuity acting as joint lead managers and bookrunners. The funds will also be used to repay director loans and cover corporate costs, ensuring a clean financial slate as the company moves forward.

Outlook for Genmin and the Gabon Iron Ore Sector

Genmin’s progress marks a significant step for Gabon’s mining sector, potentially unlocking a new iron ore hub with access to existing infrastructure and renewable energy. The company’s projects, including Baniaka, Bakoumba, and Bitam, collectively offer substantial resource upside and strategic positioning in Central Africa’s emerging commodity landscape.

While the company’s trajectory is promising, the finalisation of project financing terms with SHICO and other partners remains a key milestone. Market conditions and operational execution will also play critical roles in realising the project’s full potential.