PERTH (miningweekly.com) – Junior iron-ore explorer Genmin has received its $10-million cash royalty payment from mining major Anglo American after earlier striking a royalty agreement over the Baniaka iron-ore project, in Gabon.
Under the agreement, Anglo American paid $10-million to Genmin subsidiary Gabon Iron Ore (GIOL) in consideration for the grant of a royalty on sales revenue received from the sale of the first 75-million tonnes of iron-ore products produced and sold from Baniaka.
Genmin’s flagship project, Baniaka, is at feasibility stage and is estimated to host a mineral resource of 700-million tonnes, with significant growth upside remaining given that the mineral resource estimate was prepared for just 15 m of interpreted strike, with over 70 km still to be drill tested.
GIOL additionally granted Anglo American an exclusivity period of 120 days from the delivery of the Baniaka preliminary feasibility study to conduct confirmatory due diligence, and negotiate and agree legally binding documentation for the provision of up to $75-million of funding for Baniaka, and an offtake agreement for up to 100% of iron-ore products from Baniaka.