Genmin Secures A$15M in Director Loans as PowerChina Submits EPC Bids

Strategic Progress on Baniaka Project

Emerging African iron ore producer Genmin Limited (ASX – GEN) has reported solid advancement in its flagship Baniaka project in Gabon during the September 2025 quarter. The company’s collaboration with PowerChina, a globally recognised engineering and construction partner, has reached a milestone with the submission of competitive engineering, procurement, and construction (EPC) proposals for key non-processing infrastructure. These include a 60-kilometre private haul road, a 30-kilometre overhead power line, and an onsite accommodation village.

PowerChina’s proposals suggest potential capital cost reductions compared to earlier estimates from the 2022 pre-feasibility study, a welcome development as Genmin integrates these figures into its updated project cost model. The pre-feasibility study addendum, expected to complete in early 2026, also aims to simplify the startup product strategy by initially focusing on high-grade fines, reducing operational complexity and risk during commissioning.

Robust Permitting and Infrastructure Agreements

Baniaka is fully permitted with a 20-year large-scale mining licence and has secured essential fiscal protections through a Mining Convention signed with the Gabonese government. The project benefits from long-term infrastructure agreements, including a 20-year renewable hydroelectricity supply contract with Gabon’s state utility Société de Patrimoine (SdP) and a 15-year integrated rail and port agreement with Owendo Mineral Port. These arrangements position Baniaka favourably for commercial operations and align with the company’s Baniaka Green® branding, which highlights the greener attributes of its iron ore products in support of the green steel transition.

Offtake and Exploration Outlook

Genmin has signed four non-binding Memoranda of Understanding (MoUs) with Chinese counterparties for a potential total offtake of 19 million tonnes of Baniaka Green® iron ore products over initial terms of two to three years. These MoUs remain active, with counterparties committed to progressing towards binding agreements.

Exploration activities continue across Genmin’s broader Gabon portfolio, including the Bitam polymetallic project in northern Gabon and the Baniaka Hub in the southeast. Recent metallurgical test work on magnetite samples from the Bandjougoy deposit within the Baniaka Hub is complete, with detailed results forthcoming.

Financial Position and Funding Initiatives

During the quarter, Genmin secured A$15 million in short-term loan funding from entities related to non-executive directors Greg Lilleyman and John Hodder, with an additional A$12 million provided post-quarter in October. These unsecured loans carry interest rates of 12% per annum and are repayable by mid-2026. The company has also novated a previously drawn A$3 million loan facility from major shareholder Tembo Capital to one of these director-related entities.

Despite these injections, Genmin reported a net cash outflow and limited cash runway, prompting the implementation of cost-saving measures focused on preserving cash ahead of the final investment decision (FID), targeted for late 2026. The company is actively exploring further short-term funding solutions to support ongoing development and compliance activities.

Looking Ahead

Genmin anticipates receiving formal EPC proposals from PowerChina during the December 2025 quarter, a critical step towards project execution. The completion of the pre-feasibility study addendum will provide updated capital and operating cost estimates, informing the FID and financing discussions. With a fully permitted project, strong infrastructure agreements, and strategic partnerships in place, Genmin is positioning Baniaka as Gabon’s first commercial iron ore mine, contributing to the region’s economic development and the global green steel supply chain.