Gulf will now be fully funded to complete the construction and commissioning of first two smelters at Kupang Smelting Hub in Timor, Indonesia.
The €$52 million Structured Loan Facility, expected to be received by the end of January 2020, will allow the Kupang Smelting Hub construction program to re-start immediately, with an expected timeframe for completion of the first two smelters and pouring of first metal in Q3 2020
This Loan Facility also provides Gulf with the ability to ramp-up its high-grade (+49 per cent Mn) manganese mining and exploration activities in Indonesia taking advantage of its licence to export manganese concentrate and to advance its strategic joint venture with Iron Fortune in Timor Leste.
In contractual terms, the two key parties to the transaction are HSBC Bank as provider of the underpinning collateral, a Standby Letter of Credit, and Legal and General Investment Management Ltd as provider of the loan itself, with the assistance of Glacier International Depository, who are responsible for preparing and handling of the instrument issuance in raising and providing of the funds for Gulf.
Gulf will now be fully funded to complete the construction and commissioning of the first two smelting furnaces at the Kupang Smelting Hub facility in West Timor, Indonesia. As previously reported, construction of the facility is currently 60 pe cent complete, with approximately US$13 million and a further 6-7 months’ work required to complete the first two smelting furnaces.
Commenting on the development, Gulf’s Managing Director, Hamish Bohannan said the Company was delighted to have finally secured this facility.
“I can confidently reassure shareholders that we now have a clear line of sight on the pouring of first metal at Kupang in Q3 of 2020,” said Mr Bohannan.
“With US$13 million required to complete the construction and commissioning of our first two smelters, we now have ample capacity to fast-track high-impact mining and exploration programs targeting Indonesia’s abundance of high-grade manganese ore deposits.
Gulf Chairman, Craig Munro, said this was a transformational step for Gulf.
“We are now firmly on the road to becoming a leading global ultra-low carbon ferromanganese producer this year.”