Gulf secures $15m

Gulf Manganese Corporation has secured a $15 million funding package, led by an Indonesian investment group, to complete construction of the company’s first two smelters at its Kupang smelting hub in West Timor.

PT Jayatama Tekno Sejahtera will pay $6 million via a convertible note facility, which will be converted into a 25 per cent stake in the Gulf subsidiary that owns the Kupang project.

An additional standby facility of $7 million has been made available by PT JTS.

As part of the transaction, Gulf has completed a $2 million converting note issue to Eighteen Blue Investments.

Gulf managing director Hamish Bohannan said the funding package would enable the company to complete construction and commissioning of the first two smelters at the facility.

“This is a game-changing transaction for Gulf and the board is very pleased to have attracted a highly-respected Indonesian partner such as PT JTS, as it now provides the company with a very clear and defined pathway through to first production this year,” he said.

“With all relevant approvals and funding now in place, and our first two smelters expected to arrive on site during March, we are entering a very exciting period where we expect considerable shareholder value to be unlocked over coming months.”

As part of the transaction PT JTS has appointed two commissioners and one director to Gulf’s subsidiary.

Fofo Sariaatmadja and Chairoel Jul Naro will be appointed as commissioners while Johanes Susilo will be appointed as a director.

Shares in Gulf finished up 14 per cent at 1.6 cents each today.