- Manganese producer Gulf Manganese (GMC) has secured a loan worth nearly $85 million
- The funding will fully finance the construction of the first two smelters at its Kupang Smelting Hub
- Located in Indonesia, the smelting plant will produce a high quality manganese alloy
- The company has two years to pay the loan back, which comes with a 14.5 per cent interest rate each year
- Gulf’s share price has soared 40 per cent today, with shares trading for 0.7 cents each
Manganese producer Gulf Manganese (GMC) has secured a loan worth nearly $85 million (€52 million).
This leaves the company fully financed as it finishes construction of the first two smelters at its Kupang Smelting Hub in Indonesia.
The market has responded favourably to Gulf’s announcement, with the company’s share price soaring 40 per cent by midday trade.
Since the new funds have been confirmed, construction is set to re-commence immediately. Completion of the first smelters is forecast for the third quarter of this year while the first pouring of metal is expected to occur during this time too.
The Kupang Smelting Hub, located in Indonesia, is being constructed to process ferromanganese (alloy with a high content of manganese).
Once up and running, it will produce over 82 per cent premium quality manganese alloy.
“This is a transformational step for Gulf and we are now firmly on the road to becoming a leading global ultra-low carbon ferromanganese producer this year,” company Chairman Craig Munro said.
When construction of the plant is finished, it will feature eight furnaces.
Gulf has two years to pay the loan back, which comes with a 14.5 per cent interest rate each year.
The company remains confident that it will achieve the first pour of metal by the third quarter, and that it has the funds to complete construction.
“I can confidently reassure shareholders that we now have a clear line of sight on the pouring of first metal at Kupang in Q3 of 2020,” company Managing Director Hamish Bohannan said.
“With US$13 million [AUD$18.91 million] required to complete the construction and commissioning of our first two smelters, we now have ample capacity to fast-track high-impact mining and exploration programs targeting Indonesia’s abundance of high-grade manganese ore deposits,” he added.
At 12:30 pm AEDT, Gulf’s share price is trading for 0.7 cents each.