Gulf signs $26m funding deal

Shares in Gulf Minerals Corporation surged on news it had signed a $26.3 million equity funding deal with Sigur Holdings to cover development costs at its manganese smelting project in Indonesia.

Under the terms of the deal, Sigur will subscribe for $500,000 of Gulf’s convertible notes and will elect a representative to join Gulf’s board of directors.

In return, Gulf will list its subsidiary company, which holds the Indonesian manganese smelter project, onto the Nasdaq stock market in the US.

Gulf chairman Graham Anderson said the agreement was a watershed moment in the company’s development of the manganese smelter project.

Gulf said the funding would cover the first stage of the project’s development, while a future IPO would cover the balance.

The deal is subject to due diligence by both parties.

Shares in Gulf were 15 per cent higher at 4.6 cents per share at 11:30am.