Gulf Manganese’s first tranche of share issue completed

  • Jan 16, 2019 AEDT
  • Team Kalkine
Gulf Manganese’s first tranche of share issue completed
Gulf Manganese Corporation Limited (ASX: GMC) headquartered in Great Eastern Highway, Ascot, Australia, is a metal and mining company. The company is focussed on developing business, Kupang manganese project, in West Timor, Indonesia through its subsidiary, PT Gulf Mangan Grup. It is aimed towards producing and selling low carbon ferromanganese alloy. Once it is completed with at least eight furnaces being fully operational, the Kupang Smelting Hub is expected to produce up to 155,000 tonnes per annum of premium quality 82%+ manganese alloy.  Today, the company has announced that the first tranche of the recently announced additional investments has now been completed with A$3.6 million received by the Company. On 2 January 2019, the company announced to issue a total of 533,333,333 shares at a price of A$0.015 along with 533,333,333 free-attaching options to raise an aggregate of A$8,000,000. The placement was planned to take place in two tranches. Under the first tranche (amounting a total of A$3.6 million), the company was expected to issue 241,815,011 shares and 241,815,011 options on or around 15 January 2019, subject to certain conditions. The second tranche amounting to a total of A$4.4 million was scheduled to issue the remaining 291,518,322 shares and 291,518,322 options subject to conditions including shareholder’s approval under Listing Rule 7.1 along with the Direct Shipping Ore License. On 2 January 2019 only, the company issued a total of 110 million shares have been issued to Mighty River International (MRI) to settle the Court proceedings and raised A$150,000 in cash and planned to issue further 10 million shares on or around 15 January 2019 raising an additional A$150,000. The total A$300,000 fund will be used for working capital purposes. The funds are expected to be used for the repayment of A$2.5 million loans between the company’s subsidiary PT GMG and PT JTS along with A$5.5 million for construction and commissioning of the first 2 smelters at the Kupang manganese project. Today, as part of the first tranche, Eighteen Blue Investments Pty Ltd (EBI) converted its existing A$2 million of convertible notes into 133,333,333 shares in Gulf at a price of A$0.015 per share. The second tranche is expected to take place soon after the specified conditions are met. The issue of additional shares to MRI are also likely to take place soon. GMC has extended the shares offer deadline of 15 January 2019 to 22 January 2019. As per the management, the conversion of the notes is a strong signal for the company of their belief in the success of the Kupang smelter project. GMC has recommenced site activity and is moving forward towards planned commissioning in the third quarter of this calendar year. Looking at Gulf Manganese Corporation Limited’s stock performance and the return it has posted over the last few months, the stock has generated a negative return of 18.18% during the past six months. It is currently trading at A$0.008 (as on 16 January 2019) with a fall of 11.111% or 0.1 cents in the price during the day’s performance. The company has ~3.11 billion shares outstanding with the market cap of circa A$27.97 million. Its 52-week high and low are marked at A$0.023 and A$0.007 respectively.

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