GULF Manganese (ASX: GMC) has inked a deal securing necessary funds to construct and commission the first of two smelters at the Kuapang smelting hub in West Timor, Indonesia.
The company executed a binding term sheet for the establishment of a €52m structured loan facility with Glacier International Depository Ltd, Legal and General Investment Management Limited and HSBC Bank
The loan, which is presently being finalised, is expected to be received by the end of January.
Gulf Manganese will be fully funded to complete the construction and commissioning of the smelter, which currently sits at 60pc complete and requires a further six to seven months’ work and about US$13m capital.
The loan facility would also provide the company with the ability to ramp up mining and exploration activities in Indonesia by taking advantage of its licence to export manganese concentrate, and to advance its JV with Iron Fortune in Timor Leste.
The company was given the green light to export up to 103,162t of 49pc manganese per year from the Indonesian government in May 2019.
Gulf Manganese managing director Hamish Bohannan said that he was delighted to have finally secured the facility.
“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,” he said.
“With US$13m 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.”
Gulf Manganese chair Craig Munro said that the team was eager to turn attention toward executing the company’s milestones.
“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,” he said.
