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Gulf Manganese restructures A$6M loan into 25.1% shareholding, A$5M loan

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Gulf Manganese restructures A$6M loan into 25.1% shareholding, A$5M loan

PT Jayatama Tekno Sejahtera, or JTS, and its unit PT Jayatama Global Investindo, or JGI, agreed to restructure its debt facility and respective investments in Gulf Manganese Corp. Ltd. and its Indonesian unit PT Gulf Mangan Grup, or GMG.

JGI will restructure its existing A$6 million convertible note with the company into 25.1% of the company's issued share capital and a loan of about A$5 million, which will be repayable from the profits from commercial production of the Kupang smelting hub facility.

Following the conversion, Gulf will hold a 74.9% interest in GMG, and JGI will receive a 2.5% net royalty on alloy sales from GMG's first two smelters.

JGI will also invest a further A$6 million into Gulf, in two tranches, at 1.5 Australian cents per share, each with a free attaching 0.5-cent listed option on a one-for-one basis, expiring April 21.

Meanwhile, Gulf signed a two-tranche subscription agreement with a Singapore-based ore and alloy company for an additional A$2 million investment into Gulf at 1.5 cents apiece with a free attaching listed option on the same terms.

As part of the restructure, Eighteen Blue Investments Pty. Ltd. agreed to convert its existing A$2 million of notes after Gulf receives the first tranche of the investment from the Singapore-based company.

Second tranche of investment from the Singapore-based company is conditional on GMG receiving, or close to receiving, its manganese direct shipping ore license by March 31.