Gulf Mines (ASX:GLM) has inked a deal to purchase the major shareholder’s interest in Indonesia-based Asia Minerals Corporation, which is developing a high grade manganese trading and exporting operation in West Timor.
The project, being run by Asia Minerals’ subsidiary PT Asia Mangan Group, is achieving export grades of up to 56% manganese ore- one the world’s highest commercial grade of manganese.
Asia Minerals also has interest in highly prospective exploration areas for manganese in West Timor, where it has recently commenced a programme to test several types of geophysical techniques to potentially prove up commercially significant quantities of manganese deposits.
Asia Mangan has recently received all the required export permits and licences and is the only group to hold complete licences covering the combined operations of production and trading.
Gulf will acquire 15 million shares and 15 million options in Asia Minerals, equivalent to 19.5% fully diluted from Leprechaun Holdings.
The purchase will be satisfied by way of the issue by Gulf of 335 million fully paid shares and 665 million 3 year options with a strike price of $0.0075 per option.
The proposed transaction is conditional upon Gulf shareholders’ approval.
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