Gulf secures $10m investment to speed up Kupang smelting hub project
Friday, August 5 2016 - 06:30 AM WIB
ASX-listed Gulf Manganese Corporation Limited said Friday that it has entered into a binding term sheet with Marthen Amtiran for the investment of US$10 million in Gulf?s Indonesian‐based subsidiary PT Gulf Mangan Grup (PT Gulf), for a 10 percent interest in PT Gulf subject any regulatory approval.
The investment is expected to help speed up Gulf?s smelting hub project in Kupang, West Timor Regency, East Nusa Tengara Province.
The company said in a statement that Marthen will pay a non‐refundable deposit of US$0.2 million within 5 business days of the signing of this term sheet. The balance of $9.8 million will be paid within 5 business days of the regent providing a written recommendation of the Kupang Smelter Project to the Governor of the Province of East Nusa Tenggara (NTT).
Following the initial US$10 million investment, Marthen will have a six month option to purchase an additional 5 percent interest in PT Gulf for US$7 million. ?Pak (honorific) Marthen will be entitled to one board representative on Gulf,? the statement said.
Furthermore, the company said it is well‐advanced in discussions to purchase the initial smelting furnaces from South Africa, and will provide additional information once negotiations have been finalized.
Gulf?s Managing Director, Hamish Bohannan, commented: ?The securing of a local cornerstone investor is a transformational milestone for Gulf, its shareholders, and the stakeholders of PT Gulf Mangan Grup. We are very pleased to be partnering with the highly respected Pak Marthen at this exciting stage in the Company?s development.
The cornerstone investment is a strong endorsement of Gulf?s vision to develop a world‐class manganese alloy facility in West Timor, and we look forward to delivering a number of benefits to the local Kupang region and its people.
Gulf is now well funded to execute a number of key value drivers in the near‐term, including the purchase and transportation of our initial manganese smelting furnaces from South Africa and the commencement of site works at Kupang. We look forward to providing additional corporate and operational updates in due course.?
Editing by Reiner Simanjuntak