To be clear, the agreement you've highlighted states that Gulf...

To be clear, the agreement you've highlighted states that Gulf had to transferred ownership of the smelters to PT Gulf, not to PT JGI.

PT JGI, the minority stakeholder in PT Gulf, were granted security over the smelters in the event that GMC, the majority stakeholder, defaults on any repayments of the $7m funding facility from PT JGI.

In the event of a default, PT JGI has the option to sell the smelters to cover the outstanding amount, but they must also return any additional proceeds from the sale to PT Gulf, which GMC would be then entitled to 75% of.



It would be nice to put this line of debate to bed as it is kind of meaningless at this point. If the project succeeds, then GMC will not be defaulting on any repayments. If it fails, then investors will have lost most, if not all, of their money anyway.

Not that any of us want to see further dilution, but I doubt GMC would have much trouble tapping investors one final time if required, seeing how close they now are to production. Whether or not the project is as profitable as stated, or if GMC can even source enough manganese to run 2-8 smelters at full capacity is a separate issue.