Manuka Resources (ASX:MKR) has entered into a binding term sheet to acquire emerging vanadiferous titanomagnetite iron sands producer Trans-Tasman Resources Limited(TTR).
Highlights:
- TTR owns a mining permit and exploration permit situated in the South Taranaki Bight off the west coast of the North Island of New Zealand, on which a Bankable Feasibility Study for an offshore iron sands project has commenced.
- Manuka will acquire all of TTR for the issue of up to approximately 180 million new MKR shares.
- The company confirms ongoing commitment to its assets within the Cobar Basin of NSW, where it continues to produce silver and has budgeted A$3.6M for exploration across its projects over the coming financial year.
- The purchase provides both commodity and geographical risk diversification to existing Manuka shareholders.
TTR and the STB Project
TTR is a New Zealand incorporated company that owns Mineral Mining Permit 55581 and Mineral Exploration Permit 54068 situated in the South Taranaki Bight off the west coast of the North Island of New Zealand on which a Bankable Feasibility Study (BFS) for an offshore iron sands project has commenced (STB Project).
Manuka’s vision is for a project initially recovering ~5 million tonnes of vanadiferous titanomagnetite (VTM) iron ore concentrate per annum over a 20 year mine life. In addition to its steel hardening properties, vanadium is at the forefront of the ‘green economy’ having assumed a pre-eminent role in its capacity to improve energy storage and battery life via the Vanadium Redox Flow Battery (VRFB).
The STB project concentrates are expected to have > 11 pounds vanadium per tonne (current pricing US$7.70/lb). The potential payability of these credits will be fully assessed in the BFS and could enhance the STB project’s revenue stream.
Manuka envisages the STB Project being a low cost producer with C1 costs approximately US$21 – US$243 per tonne of concentrate. Current pricing for Fe of similar grade is ~US$95/t4 cfr North China and does not include the benefit of any Vanadium credits which may be achieved.
TTR completed the prefeasibility study (PFS) for the commercial recovery of the vanadium titanomagnetite resource and Manuka expects to finalise the BFS within the next 12 months.
It is worth noting that over A$75m has been spent on the project since TTR’s formation.
The STB Project has a 3.8 billion tonnes of mineral resources reported in compliance with JORC Code (2012) and estimated in accordance with a Competent Person as defined by the JORC Code (2012), contained within granted Mineral Mining Permit (MMP555816) covering 65.76 sq. km and Minerals Exploration Permit (MEP54068) covering 635 sq. km.
For further information please visit: https://www.manukaresources.com.au/
