Emerging African iron-ore producer Genmin on Wednesday kicked off a fundraising for about A$28.4-million to advance its Baniaka project, in Gabon.
This comes as the company was recently awarded a 20-year mining permit for Baniaka, which will be developed at an initial rate of five-million tonnes a year, scaling up to more than 20-million tonnes a year over time.
Genmin is aiming for initial production by the middle of next year, pending the completion of financing initiatives.
The fundraise will comprise a two-tranche placement with firm commitments received for A$13.2-million and a one-for-three nonrenounceable entitlement offer to eligible shareholders to raise up to A$15.1-million.
The placement and entitlement offers are both priced at A$0.10 a new share, with one free attaching, unlisted option for every three new shares subscribed for, other than tranche one of the placement, where the participants will receive one free attaching new option for every new share subscribed for.