Resources Rising Stars: Genmin

Barry Fitzgerald

The junior end of the mining market faces a funding freeze as investors hit the brakes on equity funding. But there are ways around the funding freeze if a junior’s underlying project has some big time appeal.

ASX-listed iron ore junior Genmin (GEN, trading at 21c) is an example.

It has side stepped the equity market to pull in $US10 million in funding from the mighty Anglo American in return for a capped royalty and an exclusive right to negotiate a $US75m financing package, and up to 100% of offtake.

The funding means Genmin can keep up the pace at its 700 million tonne Baniaka project in Gabon, central west Africa. A bankable feasibility into the project is now due at the end of the September quarter.

Genmin’s CEO Joe Ariti made the point that the $US10 million injection meant there was no dilution to existing shareholders, with the agreement also providing a mechanism to negotiate potential development funding, and an offtake solution in the longer term.

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