Genmin Limited secures crucial placement to fuel African iron ore project

In a significant development that promises to propel the company toward becoming a major player in the iron ore industry, Genmin Limited has successfully secured A$10 million in fresh funding. This financial boost is the result of strong support from both institutional investors and key stakeholders. This timely injection of capital comes as Genmin positions itself to advance its flagship project, Baniaka, located in Gabon, West Central Africa.

Genmin announced the successful completion of a two-tranche placement that saw a flurry of interest from new and existing investors alike. The placement was priced at A$0.05 per new share, representing a 23.4% discount to the 10-day Volume-Weighted Average Price (VWAP). The funds are expected to provide much-needed capital to further the company’s corporate objectives, cover operating costs at Baniaka, and manage general working capital.

Key to this impressive placement was the leadership shown by Genmin’s largest shareholder, Tembo Capital. Tembo demonstrated its unwavering support by contributing A$1.45 million toward the placement and providing a US$1 million loan facility that will convert into equity in the second tranche. The funds raised are seen as critical in the company’s ongoing efforts to secure project financing for Baniaka, where operations are expected to commence in 2025.

Experts familiar with the African mining sector have applauded this move, with some noting that it positions Genmin as a significant emerging player in Gabon’s iron ore industry. According to industry insiders, Genmin’s strategic location and access to existing infrastructure in Gabon give the company a notable advantage over competitors.

The placement, managed by Foster Stockbroking and co-managed by Reach Markets, will see approximately 200 million new shares issued in two tranches. The first tranche is set to raise A$8.5 million, with a further A$1.5 million to be raised in the second tranche, subject to shareholder approval at an extraordinary general meeting scheduled for mid-November 2024.

Settlement of the first tranche is expected to occur on October 11, 2024, with shares to be allotted on October 14, 2024. The second tranche, contingent on shareholder approval, will see the issuance of shares to Tembo Capital and participating directors. Shareholders are expected to ratify the second tranche by late November, paving the way for further development of the Baniaka project.

Experts within the mining sector have hailed this funding as a strategic milestone for the company. Industry analysts suggest that the strong backing from institutional investors signals a high level of confidence in the company’s business strategy. They believe the company is well-positioned to become a significant player in the iron ore market due to its strategic access to infrastructure and a favorable regulatory environment in the region.

Furthermore, analysts highlight that the company’s ability to raise substantial funds at a pivotal moment reflects positively on its leadership and future operational prospects. With key approvals and permits already in place, such as environmental clearance and long-term mining rights, the project is seen as having a solid foundation, attracting the attention of investors who recognize the potential for long-term growth.

The funding secured through the placement is expected to fast-track Genmin’s progress toward establishing Gabon’s first commercial iron ore mine. If all goes according to plan, Genmin will commence production at Baniaka by 2025 at an initial rate of 5 million tonnes per annum, with the possibility of scaling up to 10 million tonnes. With global demand for iron ore continuing to surge, this development positions Genmin as a significant player in the global mining industry, drawing attention from investors worldwide.

Tembo Capital’s commitment, combined with shareholder confidence, signals a promising future for the company. As Genmin continues its negotiations for further project financing, the market will be watching closely to see how the company capitalizes on this momentum.