MiningNews: Genmin raises for iron ore acceleration

JUST weeks after delivering a promising prefeasibility study for its flagship 760 million tonne Baniaka iron ore project in Gabon, JoeAriti’s Genmin has completed a placement so it can fast track pre-development works.

The company has worked with Foster Stockbroking and Morgans Corporate to raise A$7.9 million at 20c per share, a 16% discount to recent trading levels.

Ariti said the placement "received strong support" from existing and new investors following the PFS that was positive for Genmin's plans to develop a 5Mtpa operation from mid-2024.

He said the cash injection to its $12 million treasury would help it undertake pre-development works, and order long lead items.

"To achieve our target production date, over the next three months we expect to sign the long form rail, port, and power agreements, lodge the social and environmental impact assessment with the environmental administration, and submit a mining licence application - all significant near-term milestones informing our final investment decision in mid-2023," he said.

The initial phase of Baniaka is based only on the detrital iron deposit and soft oxide resource, and maiden reserves of 101Mt.

The PFS outlined a post-tax net present value of $601 million, an internal rate of return of 38%, a payback period of about 30 months, and average cash costs of$59/t.

It has Anglo American as a potential offtake and funding partner, and is working on a 10-20Mtpa long-term development.

Genmin has been working on Baniaka since being granted the licence in 2012.

Shares in the company dropped 10% this morning to 22.5c, valuing the company at $92 million.

Genmin shares have traded at 15.5-28c over the past year.

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