- Resource processors Gulf Manganese announced today the company will be purchasing a 20 per cent stake in Timor-Leste’s first ever minerals exploration company
- The company, Iron Fortune, is Australian operated but currently has no projects in the near future announced
- Gulf will be coughing up a total $300,000 for the purchase, alongside shelling out $100,000 worth of its own shares to Iron after a due diligence check
- The move acts as expansion to Gulf, currently operating a smelting facility near Timor-Leste’s largest port trading to China, Japan and Korea
Gulf Manganese’s share price hasn’t budged in the ASX today, despite the explorer announcing plans to purchase a 20 per cent stake in another company.
The resource processor announced to shareholders its plan to move in on Aussie-based Iron Fortune, currently occupying Timor-Leste.
Gulf will be coughing up AU$100,000 for exclusive rights to grab the shareholding while a due diligence process is undertaken.
Despite this global-deal making, Gulf’s place in the ASX is unchanged today. The company’s shares are sitting flat at 0.7 cents in a $34.56 million market cap.
The purchase into Iron Fortune doesn’t presently show stark opportunity for further project work, but rather a way to augment Gulf’s present work in the Timor region.
However, Iron Fortune is the first ever minerals exploration company in Timor-Leste.
Gulf Managing Director Hamish Bohannan spoke on these terms through the company’s ASX release to shareholders this morning.
“Gulf’s investment in Iron Fortune underpins our vertically integrated mine-gate to production acquisition strategy and provides an excellent opportunity to diversify our asset base beyond Indonesia, whilst remaining in a common geological region,” Hamish said.
Currently, Gulf owns and operates a smelting facility five kilometres from Timor’s largest port. The port gives large advantage to accessing markets in Japan, Korea and China.
“Further, with Iron Fortune’s established and respected presence in Timor-Leste, Gulf has the potential to quickly expand its high quality manganese mining footprint and processing capabilities to support the ongoing development of our Kupang Smelting Hub facility,” Hamish added.
Recently the company has signed contracts to facilitate more power for the smelting facility and improve efficiency.
The company has also considered building its own shipping berth to reduce logistics costs.
In moving to purchase the holding in Iron Fortune, Hamish will be appointed to its board as a Non-Executive Director.
Upon completion of the due diligence process, Gulf will pay an additional $200,000 and issue $100,000 worth of is shares to Iron Fortune.
“This new partnership with Gulf will leverage their technical and geological skill base in the Timor region and help us to accelerate both exploration and manganese mine development,” Iron Fortune Director Ian Sinclair said.
“We are encouraged that our five-year investment focus on Timor-Leste has been recognised by Gulf and supports our effort to be at the forefront of minerals exploration in Timor-Leste,” he said.