Gulf Manganese raises A$1.02m to fund smelter project
Monday, April 10 2017 - 03:17 AM WIB
ASX-listed Gulf Manganese Corporation Limited announced Monday it has completed a share placement to sophisticated investors of 204,600,000 ordinary shares at $0.005 per share raising total proceeds of A$1,023,000 to help finance its smelter project in Kupang, East Nusa Tenggara Province.
The company said in a statement it intends to issue the shares under the placement on April 13, 2017.
Gulf also said that it has agreed to terms with the same sophisticated investors to maintain their positon in the company by investing an additional minimum of A$3,500,000 at a price of $0.015 per share with free attaching 3 for 2 listed options (GMCO) exercisable at 0.5 cents each expiring April 21, 2019 (the ?investment?). The additional A$3,500,000 investment is subject to Gulf signing the final land lease agreement for the commencement of construction of the Kupang Smelting Hub Facility at the Bolok Industrial Estate. Subject to approval by Gulf shareholders, the sophisticated investors will be entitled to two Non-Executive Board seats following completion of the A$3,500,000 investment.
As previously advised on October 3, 2016, Gulf has received approval from the Governor of East Nusa Tenggara for the construction of a manganese smelting facility, and following recent collaborative discussions with the Lands Department the company expects to sign the final lease agreements imminently.
Funds received from the initial placement will be used to finalize the refurbishment of the company?s first two smelting furnaces in preparation for their shipment from South Africa to Kupang, and to repay a short-term loan of A$350,000. In addition, the company will also commence a detailed engineering program, which will include the appointment of a local engineering contractor. Geotechnical and early civil works activities are also scheduled to commence at the Kupang site in coming weeks.
A notice of general meeting will be dispatched to shareholders shortly to approve a capital raising of a minimum of A$6,000,000 with a maximum of up to A$12,000,000 at a price of 1.5 cents per share with free attaching 3 for 2 Listed Options (GMCO) exercisable at 0.5 cents each expiring 21 April 2019 (?capital raising?). The proposed capital raising includes the minimum of A$3,500,000 investment by the same sophisticated investors indicated above.
Triple C Consulting Pty Ltd will act as lead manager to the capital raising.
Gulf?s Managing Director, Hamish Bohannan, commented: ?Gulf is pleased to have secured this recent funding support, with this particular group demonstrates a strong commitment to support the development of the Kupang Facility.
The board is also assessing a number of additional funding avenues with their corporate advisers, including both offtake and debt funding, to provide the company with additional financial flexibility over the next 12 months if required.
Importantly, the team can now focus on driving the project towards construction, with the refurbishment of our first two smelting furnaces and the commencement of a detailed site works program at Kupang the immediate objectives.?
The company requests the voluntary suspension remain in place until the completion of the capital raising. The company is not aware of any reason why the suspension should not be granted.
Editing by Reiner Simanjuntak