Genmin (ASX:GEN) has signed a non-binding term sheet with ID Advisors for a US$3 million ($4.64 million) offer of convertible notes to develop its wholly owned Baniaka Project within the Republic of Gabon, west of Central Africa.
If the offer of notes proceeds, Genmin will use the proceeds to advance the development of its 100% owned Baniaka iron ore project located in the Republic of Gabon, west Central Africa.
The noteholder is a large, multi-billion-dollar family office involved in the North American mining industry, including iron ore and steel making assets, with a history spanning 150 years. Under the terms of the term sheet, ID Advisors will advance US$3 million and issue 3 million and just over 115.75 million unlisted options to the noteholder, in two tranches.
The Notes will be unsecured, have a face value of US$1 per note, a maturity date of 30 June 2027, and be convertible into shares in Genmin at the noteholder’s election at a conversion price of $0.040, which is a 25.1% premium to the 30-day volume weighted average closing price (VWAP) of Genmin shares traded up to and including 30 May 2025.
The notes have a 12% coupon paid quarterly in Genmin shares at a deemed issue price equal to the 30-day VWAP on the ASX prior to the date of payment.
Both parties will negotiate a formal legally binding convertible note deed shortly.
Genmin CEO Andrew Taplin says the company is delighted to welcome ID Advisors as a future partner and potential investor.
“Their history and prominence in the global iron ore and steel industry combined with their significant commitment, is a strong display of confidence in both Genmin and Baniaka, and is instrumental in advancing the project towards first production in 2026,” Taplin says.
Genmin is an iron ore producer with a portfolio of three wholly owned projects spanning 4,469km2 in the Republic of Gabon in west Central Africa.
Genmin’s flagship Baniaka and nearby Bakoumba iron ore projects are in south-east Gabon and provide an emerging iron ore hub near the Haut-Ogooué provincial capital city of Franceville. The hub is favourably situated adjacent to existing and operating bulk commodity transport and renewable energy infrastructure, to which Baniaka has secured long-term access for commercial operations.
The company proposes to develop Baniaka at an initial rate of 5 million tonnes per annum and to increase scale over time to at least 10Mtpa. The start of commercial production is targeted for late 2026 with project-build financing the next milestone to be achieved. Genmin is engaged in discussions with several potential financing partners.
Write to Maddison Elliott at Mining.com.au
Images: Genmin
