Gulf Minerals completes $1.34m rights issue

By Romel S. Gurky

ASX-listed Gulf Minerals Corporation Limited said that the current entitlement rights issue has closed fully subscribed raising A$1.34 million, the proceeds of which to be used to help finance its smelter project in Indonesia.

Following a strong take up by existing shareholders, the directors placed the shortfall to sophisticated shareholders as an excluded offer under section 708D substantially to clients of the Sydney based Paradigm Securities, Gulf said in a statement on Tuesday.

?Gulf?s proposed manganese smelter at Kupang, West Timor, will find a ready market in the established steel making regions for its premium quality 78 percent ferromanganese alloy products. This project is actually a significant beneficiary of Indonesia?s restrictions on the export of unprocessed ores combined with national support for the development of competitive onshore processing facilities,? commented Barry Dawes, Head of Resources at Paradigm Securities.

Gulf recently announced significant advances towards commencement of construction of its manganese smelter with the securing of 30 hectares of industrial land and power supply in Kupang, West Timor.

Editing by Reiner Simanjuntak