PERTH (miningweekly.com) – ASX-listed Gulf Manganese will acquire a 20% interest in privately-held Iron Fortune, an exploration company focused on Timor-Leste.
Under the terms of the agreement, Gulf would pay an initial A$100 000 for exclusivity, while conducting a due diligence. On the completion of the due diligence, Gulf would pay a further A$200 000 and issue A$100 000 worth of shares to secure its 20% interest in Iron Fortune.
Gulf MD Hamish Bohannan will be appointed to the Iron Fortune board as a nonexecutive director.
He said on Friday that Gulf’s investment in Iron Fortune underpinned a vertically integrated mine-gate to production acquisition strategy and provided an excellent opportunity for Gulf to diversify its asset base beyond Indonesia, while remaining in a common geological region.
“Importantly, this partnership can significantly de-risk our ore supply chain and gives the company an enviable first-mover advantage in this emerging exploration jurisdiction. Further, with Iron Future’s established and respected presence in Timor-Leste, Gulf has the potential to quickly expand its high-quality manganese mining footprint and processing capabilities to support the ongoing development of our Kupang smelting hub facility.”