Gulf announces capital management, dual listing strategy
Tuesday, July 29 2014 - 12:54 AM WIB
ASX-listed Gulf Minerals Corporation Limited (GMC) informed shareholders Monday that as a lead up to the company?s application to the Singapore Stock Exchange for dual listing on the Catalist Board it will seek shareholder approval to consolidate the company?s current large number of ordinary shares and options on a 1 for 50 basis.
?The strategy for dual listing in Singapore is to broaden the shareholder base and introduce a range of new international shareholders as the company moves forward with its plans to build a fully integrated manganese ore and alloying enterprise based in West Timor,? GMC said in a statement.
It is proposed to call a shareholder General Meeting on 1st September 2014 to consider the proposal for the Consolidation of Capital.
Gulf Chairman, Graham Anderson, commented: ?No one likes a share consolidation however it becomes necessary for the company in preparation for an international dual listing and ultimately will be in the best interests for all shareholders as the company creates shareholder wealth through our planned alloying business.?
GMC announced in April that its fully owned subsidiary International Manganese Group Limited (IMG) plans to develop an alloying smelter facility based in Indonesia taking full advantage of the low cost high grade low impurity manganese ore, low cost of labor and modest cost of power.
The company said that production will be a premium quality 78 percent manganese alloy resulting from the unique qualities of the Indonesian ore blended with overseas ores to enhance the iron content to produce an optimum ferromanganese alloy.
It is proposed to build 8 furnaces over a 3 year period for a total capital cost of $36m funded by a A$25 million IPO on the Catalist Board of the Singapore Stock Exchange in the second half of 2014 and operational cashflow. Each furnace has a capacity of 20,000 tons alloy production per year. Production power will be supplied by a third party on a user pay basis under 9 cents/kilowatt hour, the company explained.
The first 2 furnaces will be built during 2015, coming on line January 2016, with a further 4 online January 2017 with the final 2 online January 2018.
Editing by Reiner Simanjuntak