- International parties show strong interest in supporting project finance.
- Company receives numerous funding proposals.
- Site visits conducted as part of due diligence process.
- Positive meetings held between directors and Gabon mines minister.
Genmin (ASX:GEN) has today told shareholders that it has received numerous high-level proposals to fund all or part of the US$200 million in capital required to develop the Baniaka iron ore project in Gabon.
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Recent proposals include:
- An unsolicited, non-binding offer from a Middle East consortium to provide the company with the full US$200 million through the establishment of a new joint venture.
- An unsolicited expression of interest from a Chinese listed entity to acquire a minimum 51% project interest, provide support with securing construction financing and technical development expertise in building Baniaka.
- A draft term sheet from a global commodities trader for a prepayment facility against offtake for up to US$50 million.
- A non-binding offer for US$10 million in pre-construction/bridge financing from a specialist mining investment fund.
The company’s leaders, including executive chair Greg Lilleyman, CEO Andrew Taplin, and NED John Hodder, recently hosted some of the interested parties on site visits to Baniaka as part of their due diligence process.
“It has been pleasing to receive genuine interest from a number of strategic international investors, financiers and global commodities traders to fund and/or partner with Genmin to develop Baniaka, our flagship project,” Mr Lilleyman said.
“At this stage, we remain confident that we will be able to negotiate and finalise terms with one or more parties, which will allow the Coard to make a final investment decision.”
The company has also held positive discussions with Gabon officials, including the minister of mines, Sosthène Nguema Nguema.
“The government of Gabon has shown its overwhelming support for the development of Baniaka and to ensure that cost-effective access to state-owned infrastructure for the phase one development is forthcoming,” Mr Lilleyman said.
“The government indicated Baniaka remains its number one priority project for development and is working closely with the company to achieve this outcome.”
The company wants to develop Baniaka at an initial rate of five million tonnes per annum (Mtpa) and to increase scale over time to at least 10 Mtpa.
A final investment decision is expected to be made on or around mid-CY26.
GEN is steady at 0.6¢. Mkt cap $20.74M.
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