How Genmin’s A$25.7M Raise and SHICO Deal Could Transform Baniaka Project
Genmin Limited has completed a A$25.7 million placement, cleared its debt, and made significant strides in financing its Baniaka iron ore project in Gabon, including a strategic partnership with Chinese SOE SHICO.
- A$25.7 million two-tranche placement completed, debt-free balance sheet
- Non-binding LOI with SHICO for ~60% Baniaka project funding
- Greg Lilleyman appointed Executive Chair to drive financing and partnerships
- Baniaka Pre-Feasibility Study Addendum progressing with updated cost models
- Exploration ongoing at Bitam and Baniaka hubs with significant upside potential
Capital Raise and Balance Sheet Strengthening
Emerging African iron ore producer Genmin Limited (ASX, GEN) has successfully completed a two-tranche placement raising A$25.7 million. Notably, the placement saw strong participation from company directors, who converted A$8.3 million of director loans into equity, effectively resetting Genmin’s balance sheet and leaving it debt-free as of 31 December 2025. With a cash balance of approximately A$14 million, the company is well-positioned to fund its ongoing activities through to the critical Final Investment Decision (FID) for its flagship Baniaka project.
Strategic Partnership with SHICO
Genmin has taken a significant step towards securing full project financing by executing a non-binding Letter of Intent (LOI) with Sino-Hunan International Engineering and Development Co., Ltd (SHICO), a major Chinese state-owned enterprise. SHICO has indicated an intention to provide or arrange around 60% of the funding required for the initial 5 million tonnes per annum phase of Baniaka. This partnership, while still subject to definitive agreements and approvals, marks a pivotal move in aligning Genmin with experienced international infrastructure and mining project developers, complementing existing relationships such as with PowerChina.
Leadership Focused on Execution
In a strategic leadership move, Greg Lilleyman transitioned to the role of Executive Chair in November 2025. With over 37 years of iron ore industry experience, including senior roles at Fortescue and Rio Tinto, Lilleyman’s appointment underscores Genmin’s sharpened focus on financing, strategic partnerships, and advancing Baniaka towards development. His direct involvement is expected to accelerate negotiations and execution of funding and development agreements.
Progress on Baniaka Pre-Feasibility Study Addendum
Genmin has continued to advance the Baniaka Pre-Feasibility Study (PFS) Addendum, updating capital and operating cost estimates to reflect current market conditions and recent project milestones. This includes refined mine planning, geometallurgical modelling, and incorporation of revised engineering, procurement, and construction proposals from PowerChina. The updated cost models and technical clarifications are critical to underpinning the project’s economic viability and supporting financing discussions.
Exploration Upside and Project Footprint
Beyond Baniaka, Genmin maintains a substantial landholding in Gabon, including the Bitam project in the north, prospective for iron ore and polymetallic mineralisation. Exploration activities continue, with early metallurgical test work providing benchmarks to inform broader magnetite strategies. The Baniaka Hub itself covers a significant strike length of iron mineralisation, with only a fraction currently drill-tested, indicating considerable potential for resource expansion.
Bottom Line?
With a strengthened balance sheet and strategic partnerships underway, Genmin is poised to move decisively towards Baniaka’s development, though final financing agreements remain to be secured.
Questions in the middle?
- When will Genmin and SHICO finalize binding financing and development agreements?
- How will updated cost estimates in the PFS Addendum impact project economics and timelines?
- What exploration results and metallurgical data can be expected in early 2026 to support resource expansion?
