Gulf hopes to raise another $4m in September

By Romel S. Gurky

ASX-listed Gulf Manganese Corporation Limited said it expects to receive another A$4 million in proceeds via private placement in September of this year as part of an overall $12 million capital raising.

The company on June 23 completed capital raising worth $8 million from sophisticated investors. Gulf said in a statement on Wednesday that following the closure of the capital raising, 466,666,671 new shares and 700,000,005 listed options have now been allotted raising A$7 million. It added that 100 convertible notes have also been issued for $1 million.

?The company has also received binding commitments to raise an additional $4 million on the same terms as outlined in the prospectus, which will complete the $12 million capital raising. The additional $4 million is expected to be received no later than September 30,? the statement said.

This latest funding is a significant milestone for Gulf, and will be key to driving the company?s near- term growth objectives which include the purchase of the first two smelting furnaces from Transalloys in South Africa, and the refurbishment and shipment of these furnaces to the Kupang site in Indonesia?s East Nusa Tenggara Province

Gulf said it remains solely focused on developing a world-class ferromanganese smelting business in West Timor to produce and sell medium and low carbon ferromanganese alloy. The company?s proposed Kupang Smelting Hub facility will contain eight furnaces built in stages over five years, targeting the production of a premium quality 78%+ manganese alloy.

Editing by Reiner Simanjuntak