Gulf Manganese Corp. Ltd. executed a binding term sheet to secure a €52 million structured loan facility, which will be used to complete the construction and commissioning of the company's first two smelting furnaces at the Kupang smelting hub in Indonesia.
The loan will also provide Gulf with the ability to ramp up its manganese mining and exploration activities in Indonesia, taking advantage of its manganese concentrate export license, and to advance its joint venture with Iron Fortune Pty. Ltd. in Timor Leste.
Gulf Manganese secured the loan from HSBC Bank PLC, with the assistance of Glacier International Depository Ltd.
The two-year loan comes with an interest rate of 14.5% per annum, repayable in full lump sum at the end of the loan term.