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Gulf Minerals Corporation  has been granted an ASX trading halt as it prepares to carry out a capital raising.

The halt will last until the earlier of the announcement being made or the start of trading on Tuesday, 30 September 2014.

GMC had in August proposed the development of an alloying manganese smelter facility in Kupang, West Timor.

This will take advantage of low cost, low impurity high grade manganese ore; beneficial cost of labour; modest power cost; and government fiscal incentives including a five-year tax holiday.

The first two furnaces will be built during 2015, coming online January 2016, with a further two each year for a total of eight furnaces producing 150,000 tonnes per year at full production.

It had also earlier this week entered into a Sale Agreement to divest its remaining 51% interest in EL 10335 in the Northern Territory to joint venture partner Redbank Copper

• [Editor:Sophie]