Gulf Manganese Corporation’s substantial shareholder Leprechaun Holdings has increased its stake in the company to 33.88% from 27.25% through the conversion of convertible notes. Leprechaun converted the notes into 7.5 million shares at $0.03 each, taking its total holding to 27.6 million shares.
In late May, the company received a study highlighting the robust financial project economics of its planned manganese smelter in West Timor that could return EBITDA of US$623.8 million over 20 years.
Other project financial metrics are also impressive with an IRR of 45.6% and a two-year payback period for modest start-up capital investment of US$67.5 million over four years. It will have full Government support with fiscal incentives of a 10-year tax holiday.
The company also intends to list on the Singapore Stock Exchange.
Gulf Manganese formerly Gulf Minerals Corporation is looking to develop manganese projects in Indonesia and Turkey.