Gulf completes rights issue to progress Kupang Smelting Hub

By Romel S. Gurky

ASX-listed Gulf Manganese Corporation Limited (GMC) announced recently that the company has closed its renounceable rights issue announced on March 15, 2016, following strong support from shareholders.

A total of 448,575,120 (49 percent take up) were applied for under the Entitlement Rights Issue Prospectus announced on March 17, 2016, raising a total of $897,150.

The rights issue was offered to shareholders on the basis of four new shares for every share held at the issue price of $0.002 per share closed on April 14, 2016. For every two new shares, investors received one new option with exercise price of $0.005 and term of three years.

As previously announced by the firm net proceeds and existing cash reserves will be deployed towards the following key objectives:
▪ Further advance the study on implementing and developing Gulf?s manganese alloy facility in Kupang, West Timor, East Nusa Tenggara (NTT) province.
▪ To provide for initial payments on the South African smelter to be relocated to West Timor.
▪ General working capital expenses.

Managing Director of Gulf Manganese Hamish Bohannan commented, ?We are very pleased with the strong level of support received from shareholders during the rights issue, which we view as a strong endorsement of our development strategy for the Kupang Smelting Hub in West Timor, Indonesia.

The funds raised will enable Gulf Manganese to strategically progress the development of the Kupang Smelting Hub over coming months, and on behalf of the Board I would like to thank our shareholders for their continued support.?

Editing by Johannes Simbolon