Gulf Minerals locking in smelter project funding

By Romel S. Gurky

ASX-listed Gulf Minerals Corporation Limited announced on Wednesday it has entered into a Terms Sheet covering a Committed Equity Funding Agreement to provide a total of US$20 million by way of a 10% annual interest, 4 year Senior Credit Facility loan and Preferred Shares.

The Terms Sheet has been entered into with Sigur Holdings Inc., a subsidiary of the New York-based, South African private group, Sigur Capital.

In commenting on the Funding Agreement, Gulf Minerals? Chairman, Graham Anderson said: ?This achievement is a watershed moment in the Company?s development of the manganese smelter enterprise and is the culmination of the past 12 months of focused effort by the directors and senior management.

We are pleased to be working with Sigur Holdings as they maintain a global presence and long standing relationships with international resources companies.?

Discussing this relationship, Sigur Holdings? Chief Executive Officer, Brian Kistler commented: "We are excited to be part of this project and want to be long term players and strategic partners in Gulf Minerals? endeavors."

Gulf has proposed to build manganese smelter at Kupang, West Timor, which will produce ferromanganese alloy products with a premium quality of 78 percent.

Editing by Johannes Simbolon