Genmin Secures A$4.7M in Director Loans, Novates A$3M Tembo Facility
Genmin Limited’s non-executive directors have increased their loan funding by A$0.4 million and taken over a A$3 million loan from its largest shareholder, providing immediate working capital for the Baniaka iron ore project in Gabon.
- A$3 million unsecured loan from Tembo Capital novated to entity linked to director John Hodder
- Non-executive directors John Hodder and Greg Lilleyman increase loans by A$0.2 million each
- Loans accrue 12% interest and are unsecured, repayable by June 2026 or convertible to equity
- Funds available immediately to support general working capital and project financing efforts
- Demonstrates strong insider confidence as Baniaka targets commercial production in late 2026
Loan Novation and Director Funding
Genmin Limited, an emerging iron ore producer focused on its flagship Baniaka project in Gabon, has announced a strategic reshuffle of its loan facilities. The company’s largest shareholder, Tembo Capital, has novated an unsecured A$3 million loan facility to an entity related to non-executive director John Hodder. This move consolidates insider involvement in the company’s financing structure.
Alongside this novation, non-executive directors John Hodder and Greg Lilleyman have each increased their respective loans by A$0.2 million, bringing their total loans to A$1.9 million and A$2.8 million respectively. These loans are unsecured, carry a 12% annual interest rate, and are repayable by June 2026, with the option to convert into equity subject to approvals.
Implications for Working Capital and Project Progress
The immediate availability of these funds provides Genmin with critical working capital as it advances the development of Baniaka, which is positioned to become Gabon’s first commercial iron ore mine. The project benefits from a granted mining permit, environmental approvals, and access to existing infrastructure near the provincial capital, Franceville.
CEO Andrew Taplin highlighted that the directors’ increased financial commitment signals strong confidence in Genmin’s strategy and the potential of the Baniaka project. With commercial production targeted for late 2026, securing flexible funding is a vital step toward achieving project financing milestones.
Loan Terms and Future Capital Structure
The loans from Hodder and Lilleyman are structured on arm’s length terms, accruing interest daily at 12%, with penalties for overdue amounts. Genmin retains the option to repay these loans through equity issuance, pending regulatory and shareholder approvals, which introduces potential dilution considerations for existing shareholders.
This financial arrangement complements previous director funding rounds and the novated Tembo loan, collectively underpinning the company’s near-term liquidity and operational needs as it navigates the complex path to project financing and production commencement.
Looking Ahead
Genmin’s ability to convert these loans into equity or repay them in cash will be closely watched by investors, as will progress on securing broader project financing. The company’s success in bringing Baniaka into production will be a critical test of its strategic execution and financial management.
Bottom Line?
Genmin’s director-backed funding boost underscores confidence but raises questions on future equity dilution as Baniaka advances.
Questions in the middle?
- Will Genmin convert director loans into equity, and what impact will this have on shareholder dilution?
- How soon can Genmin secure project financing beyond director loans to fully fund Baniaka’s development?
- What are the risks if commercial production at Baniaka is delayed beyond the late 2026 target?
