The investment, subject to shareholder approval, will result in the Jakarta-based businessman holding a 19.8% equity in Gulf Manganese.
Low will also be entitled to appoint one seat on Gulf’s board of directors as well as one seat on subsidiary PT Gulf Mangan Grup’s board of commissioners.
Strong project endorsement
Gulf managing director & CEO Hamish Bohannan said the support of Kwong was an excellent endorsement of the Gulf Manganese Project in Kupang, Indonesia.
He said: “This underpins the investment made by Bapak Fofo Sariaatmadja of PT Jayatama Tekno Sejahtera (PT JTS) into both Gulf and PT Gulf in March of this year.
“[It demonstrates] the company’s commitment to developing a world class Indonesian company as well as realising Gulf’s vision for the surrounding communities of Kupang and East Nusa Tenggara.
“This is a very good outcome for Gulf and another building block in our goal to build an integrated manganese mining, processing and smelting operation.
“With funding now in place, we are focused on three key objectives; the commissioning of our smelters safely, on time and on budget, acquiring a financial interest in producing manganese mines in East Nusa Tenggara and securing a direct shipping ore (DSO) export licence.”
Kupang furnace commissioning on track
Gulf will issue over 714.5 million ordinary shares to Low at a placement price of 1.5 cents per share for a total investment of $10,718,962.
Gulf will also issue the same number of listed options exercisable at 0.5 cents per option, expiring on 30 April 2019.
Shareholder approval for the placement will be sought at a general meeting expected to be held in around 6 weeks.
Funds received from the placement will be used in the development of Gulf’s Kupang Smelting Hub, potential acquisition of financial interests in a number of mining business licences, and for general working capital.
Construction at the Kupang facility is ongoing with around 60% completed and commissioning of the first two furnaces expected to begin in the fourth quarter of 2018.