Genmin (ASX:GEN) executed an "arm's length" AU$3 million unsecured loan facility with its largest shareholder, Tembo Capital, and received the first draw down under a AU$2.5 million loan facility, according to a Thursday Australian bourse filing.
The loan accrues interest at 10% per annum and is repayable on or before Dec. 31 or is immediately repayable in full upon Genmin becoming entitled to draw down on any debt financing raised to fund the development of the project.
The company could enter into a further agreement in the future to repay the facility via the issue of new equity, per the filing.
The mining firm will use the funds for general working capital as well as for early works at its Baniaka iron ore project in Gabon.
Genmin's shares rose over 2% in recent trading on Thursday.
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