Gulf finds cornerstone investor

Craig Munro-chaired Gulf Manganese Corporation has received a $US10 million ($A13 million) equity commitment from an Indonesian investor to progress development of its Kupang smelting hub in West Timor.

Indonesian group Marthen Amtiran will pay $US10 million to acquire a 10 per cent stake in Gulf’s subsidiary, which wholly owns the Kupang project.

It will also have the option to invest a further $US7 million to buy an additional 5 per cent interest in the subsidiary, at which point Marthen will have the right to add a representative to Gulf’s board.

Gulf managing director Hamish Bohannan said the securing of a cornerstone investor was a transformational milestone for Gulf, its shareholders and the stakeholders of its Indonesian subsidiary, PT Gulf Mangan Grup.

“The cornerstone investment is a strong endorsement of Gulf’s vision to develop a world-class manganese alloy facility in West Timor, and we look forward to delivering a number of benefits to the local Kupang region and its people,” he said.

“Gulf is now well funded to execute a number of key value drivers in the near term, including the purchase and transportation of our initial manganese smelting furnaces from South Africa and the commencement of site works at Kupang.”

Gulf shares closed 150 per cent higher to 1.5 cents each.