Gulf Mangan Grup obtains investment license from BKPM
Friday, July 31 2015 - 02:50 PM WIB
ASX-listed Gulf Manganese Corporation Limited said on Friday PT Gulf Mangan Grup, its 98 percent owned subsidiary, received its Foreign Investment Principle License from the Investment Coordinating Board (BKPM) for its planned ferromanganese alloys smelter project in Timor.
This is a major step gaining permission to operate within Indonesia as a foreign investment group and now permits finalizing leasing of land, obtaining an Industrial Business License (IUI) also from the BKPM on behalf of the Minister of Industry (MoI).
As previously reported Gulf entered into an agreement with a South African group, Sigur Holdings Inc, to subscribe to $500,000 of convertible notes and then ultimately to provide a US $10,000,000 project funding package.
Despite continued written assurances from Sigur that they were to deliver, and due to subsequent delays the directors concluded this group are in default. Gulf notice a similar unsatisfactory occurrence with the ASX listed group Walkabout Resources Limited.
While the company will continue to demand specific performance of the Sigur commitment the directors consider it prudent to undertake a capital raising to boost short term working capital requirements.
It is proposed to offer up to 95,000,000 shares as placement shares and shareholder shares.
Gulf continues with the strategy of seeking a Cornerstone Investor prior to a Singapore Listing of the subsidiary International Manganese Group Limited. The Cornerstone Investment will provide the working capital to commence the first stage Smelter construction.
Editing by Johannes Simbolon