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Gulf Manganese (ASX:GMC) - CEO & Managing Director, Hamish Bohannan
CEO & Managing Director, Hamish Bohannan
Source: Gulf Manganese
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  • Ore and alloy developer Gulf Manganese (GMC) remains suspended from trade pending further announcements regarding a financing facility
  • Gulf has been suspended from trade since early February when it first announced its attempts to secure financing to complete its ferro-manganese processing hub in West Timor had been frustrated
  • The company has issued a series of delay notices, blaming Brexit and the coronavirus pandemic for the failure to finalise the facility
  • Despite signing a binding term sheet for the establishment of a €$52 million (roughly A$86 million) structured loan facility in January, the company has issued a series of delay notices, blaming Brexit and the coronavirus pandemic for the failure to finalise the facility
  • Gulf has requested the voluntary suspension of its securities remain in place until June 16 – around the anticipated closing date for the transaction
  • Gulf Manganese shares remain suspended from trade, they were last priced at 0.5 cents each on February 10

Ore and alloy developer Gulf Manganese (GMC) remains suspended from trade pending further announcements regarding a financing facility.

Long story short

Gulf has been suspended from trade since early February when it first announced its attempts to secure financing to complete its ferro-manganese processing hub in West Timor had been frustrated.

Despite signing a binding term sheet for the establishment of a €$52 million (approximately A$86 million) structured loan facility in January, global interruptions have hampered efforts to finalise the deal.

The company has issued a series of delay notices, blaming Brexit and the coronavirus pandemic for the failure to finalise the facility.

Gulf has now requested the voluntary suspension of its securities remain in place until June 16, around the time of the anticipated closing date for the transaction.

Kupang smelter

Aside from the funding difficulties, the Kupang smelter has suffered other delays and difficulties as well.

An initial 100-tonne parcel of high-grade manganese concentrate was scheduled to be shipped from Sulawesi to Kupang in November. This shipment was delayed, and then rejected for failing to meet the minimum grade requirement.

While the company has since put in place further field controls to guarantee supply grades, it is still attempting to find reliable ore suppliers to feed the smelter.

While the company reported progress on this front in February, none of the promised updates have been issued, which perhaps speaks to further frustration apart from the funding difficulties.

The company has cut costs and secured $1 million in bridging finance to navigate the period of uncertainty.

Shareholders will be hoping the company can finally secure the financing facility as planned in mid-June, lest Gulf resort to dilutive capital raising to stay afloat.

Gulf Manganese shares remain suspended from trade, they were last priced at 0.5 cents each on February 10.

GMC by the numbers
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