Gulf Minerals Corporation will seek approval from shareholders later this month to change its name to Gulf Manganese Corporation. The company believes the name change will better reflect operations as it develops an Indonesian based manganese ore and alloying enterprise, and proposes to make application to list on the Singapore Exchange Catalyst Board.
A meeting of shareholders of the ASX-listed company will be held on May 22, 2015.
The company plans to build eight furnaces over a four year period for a total capital cost of $52 million. They will produce a premium quality 78% ferromanganese alloy resulting from the unique qualities of the Indonesian high-grade low impurities manganese ore.
Each furnace will cost $6.5 million with a capacity to annually produce 20,000 tonnes of alloy with power supplied by a third party on a user pay basis. The first two furnaces are planned to be built during 2015 and are expected to come online in July 2016. This will be followed by a further two furnaces each year in 2017, 2018 and 2019.
Having closed a fully subscribed rights issue to raise $1.34 million during the March quarter, Gulf has entered a funding agreement with Sigur Holdings Inc, a subsidiary of the New York-based, South African private group, Sigur Capital.
The terms sheet is for a US$20 million funding agreement by way of a 10% annual interest, 4 year senior credit facility loan and preferred shares. It is non-binding and subject to final definitive agreements following due diligence by both parties.
The proposed funding will cover the first stage of the development of the smelter enterprise with the proposed IPO covering the balance.
Gulf has appointed Como Engineers as project managers for the Kupang Smelter Project. Como is a well-respected mechanical and mineral processing engineering company based in Western Australia with an office in Jakarta. It has extensive experience in mining industry projects both in Australia and overseas, particularly Indonesia. Como has been involved in the PT Arutmin Indonesia (BHP) Coal Ports, Way Linggo Project for Kingsrose and also for the Finders Resources operation on Wetar Island.
Additionally XRAM Technologies were appointed nominated pyrometallurgical engineers. XRAM is a Pretoria, South Africa smelter specialist group. As nominated contractor they are responsible for the design, supply, construction and commissioning of the smelter furnaces.