Gulf Manganese Corporation has raised Aus$1.125 million from the placement of 75 million shares and 37.5 million options, which were approved at a general meeting of the company on October 2.

The placement was managed by Perth-based Triple C Consulting and will provide the company with working capital which will be deployed towards the development of Gulf’s premium manganese alloy facility in Indonesia.

The placement brings the ASX-listed company’s issued capital to more than 162 million shares and 37.5 million options plus the existing 15.179 million 37.5 cent and 7.5 million 25 cent options.

Gulf’s deputy chairman Dr Peter Williams said, “This is an outstanding result for Gulf Manganese shareholders and demonstrates the robust nature of our project and development plans. Furthermore, the placement was strongly supported with 100% take up in what has been a difficult environment.

“With the raising now complete, the company is looking forward to focusing on the strategic development of its low-cost Indonesian-based premium manganese alloy facility.”

Gulf Manganese is developing as an ASEAN focused manganese alloy producer. The facilities based in the West Timor capital Kupang will take advantage of the low cost of ore, labour and power in Indonesia, being the majority of operating costs. Production will be a premium quality 78% ferromanganese alloy resulting from the unique qualities of the Indonesian high-grade low impurities manganese ore.

It is proposed to build eight furnaces over a five year period for a total capital cost of US$66 million. Gulf expects the first furnace to come online July 2016, with a further two furnaces each year in 2017, 2018 and 2019, and a final one in 2020. Each furnace has a capacity of 20,000 tonnes alloy production per year.

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