Listed iron ore hopeful Genmin launches $30 million recap

Sarah Thompson, Kanika Sood and Emma Rapaport

Jan 30, 2024 – 9.47am

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Genmin, a West African iron ore developer which hasn’t traded on the ASX since August, is telling investors it is 18 months away from producing cash flows as it drums up interest in an equity raising to pay down debts.

ASX aspirant Genmin listed with a circa $126 million market capitalisation in March 2021.

Foster Stockbroking and MST Financial Services launched a $30.1 million equity raising on Tuesday morning, split across a $15 million two-tranche placement and a $15.1 million rights issue. The latter is being done at a one-for-three basis and is structured as a pro-rata non-renounceable entitlement offer.

The offer price of 10¢ a share represented a 47 per cent discount to the last close.

Genmin’s largest shareholder Tembo Capital, owner of 55.15 per cent, would convert its existing unsecured working capital loans worth $8.15 million to shares at the offer price.

Should it be fully subscribed, the raise is expected to leave the company debt-free with $15 million pro forma cash.

Potential backers were told Genmin had received a 20-year large-scale mining permit in **on, and had offtakes in place with world’s largest steel producers. It also expects to benefit from strong iron ore prices, as well as the demand for “greener” iron ore.

The company had an $81 million market capitalisation before the raise