Genmin Secures A$3 Million Director Loans to Support Baniaka Development

Director Loans Provide Immediate Capital Without Dilution

Genmin Limited (ASX:GEN) has secured A$3 million in unsecured, arm’s length loans from entities linked to its Executive Chair Greg Lilleyman and non-executive Director John Hodder. The loans, split as A$0.5 million from Injiview Pty Ltd and A$2.5 million from Harry Belle Holdings Pty Ltd, offer the company a swift cash injection to support working capital needs as it advances its flagship Baniaka iron ore project in Gabon.

Crucially, these loans come with no immediate shareholder dilution, a notable relief for investors wary of equity raises. The funds can be drawn down immediately and carry an interest rate of 12% per annum, with repayment due by 30 June 2027, though Genmin may seek to convert the loans to equity subject to regulatory and shareholder approvals.

Baniaka Project Development Advances Amid Financing Talks

The director loans arrive as Genmin continues to finalise the Baniaka pre-feasibility study (PFS) addendum and negotiate amendments to the integrated rail and port service agreements with Gabonese partners and the government. These infrastructure arrangements are critical for the planned 5 million tonnes per annum high-grade iron ore mine, which aims to be Gabon’s first commercial iron ore operation.

Genmin is actively engaging with multiple strategic investors and financiers to secure the full project funding required to bring Baniaka into production. The director loans provide a financial bridge to maintain momentum while these broader capital discussions proceed, avoiding the need for a dilutive capital raise in the near term.

Loan Terms Reflect Confidence Amid Uncertain Financing Environment

Both loans are unsecured and negotiated at arm’s length, reflecting a vote of confidence from Genmin’s leadership in the project’s potential. Interest will be capitalised quarterly if unpaid, with penalties for overdue amounts. The agreements include customary prepayment provisions triggered by any change of control or disposal of the Baniaka project assets, safeguarding lender interests.

CEO Andrew Taplin highlighted the directors’ willingness to provide funding as a strong endorsement of Baniaka’s quality and Genmin’s strategy. The loans offer a flexible and efficient funding source to keep the company on track as it finalises project execution plans and secures the necessary financing.

Genmin’s African Iron Ore Ambitions Continue

Genmin’s Baniaka project, supported by a 20-year mining permit and environmental approvals, sits alongside the Bakoumba iron ore project in southeast Gabon. Together, they form an emerging iron ore hub near Franceville, with access to existing transport and renewable energy infrastructure. The company aims to ramp production from an initial 5Mtpa to at least 10Mtpa over time.

While the director loans provide a short-term funding solution, the company’s broader financing strategy remains focused on securing substantial external investment and project finance, which will be pivotal to moving from development to production. The coming months will be critical as Genmin negotiates final agreements and funding arrangements to unlock Baniaka’s potential.