https://www.miningweekly.com

Manhattan in merger deal with New Zealand’s Trans-Tasman

23rd January 2018

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

Font size: - +

JOHANNESBURG (miningweekly.com) – ASX-listed Manhattan Corporation has entered into a binding merger implementation agreement for the acquisition of unlisted New Zealand limited company Trans-Tasman Resources (TTR).

Manhattan will acquire all the issued capital in TTR through the issue of 706-million ordinary shares and 706-million performance shares, reflecting a transaction value of about $36.4-million.

“This merger offers Manhattan shareholders, and new investors, exposure to the potential development of world-class offshore titanomagnetite and heavy mineral sands mining projects,” the company said in an update to shareholder on Tuesday.

Post-merger, the company will be renamed TTR Corporation, with a $4-million minimum capital raising being contemplated to fund the future exploration, mine development and working capital requirements of TTR’s current projects.

The size, pricing and structure of the capital raising is yet to be determined and will depend on market conditions at the time of the raising.

$500 000 of the proceeds will be used to conduct airborne geophysical surveys at the Westland Sands project; $350 000 will be used to finalise appeals; $1.65-million for early work on a bankable feasibility study (BFS) of the South Taranaki Bight project; and $1.5-million for the proposed acquisition costs, capital raising costs and working capital.

“As set out above, the company currently intends to spend the majority of funds raised commencing and advancing a BFS of the South Taranaki Bight project. While the appeals are pending, the company intends to moderate the rate of spending in order to minimise the potential for non-essential expenditure of funds,” the company said.

TTR’s most advanced project is its South Taranaki Bight iron sands project 36 km offshore Patea of North Island, in New Zealand.

The company’s second project is the granted prospecting permit covering 4 436 km2 for the Westland Sands project, off the west coast of the South Island, that is prospective for marine seafloor deposits of heavy iron-rich mineral sands known to host ilmenite, zircon, rutile, garnet and gold.

Transaction will be effected by way of an amalgamation under New Zealand law, and completion will be subject to requisite independent reports and approvals of the shareholders of Manhattan and TTR.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION